A memorandum of understanding is basically a formal document that is carried out between two parties for the purpose of working with each other.
It is an agreement between two parties. In order to authorize an official partnership, a memorandum of understanding is an important factor.
The memorandum of understanding will let you know how this contract and partnership will be carried out. The memorandum of understanding decides that how business partners will move forward and how they will assist the business in the future.