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A Letter of Understanding (LOU) is a formal text that sums up the terms of an undertakings of a contract which may have been negotiated up to this point only in spoken form or otherwise informally. It reviews the terms of an agreement for a service , a project or a deal and is often written as a step before a more detailed contract is issued.
Charles Johnson's animated GIF image comparing what CBS claimed to be a 1973-era typewritten memo with a 2004-era Microsoft Word document made with default settings. In the initial hours and days after the CBS broadcast, most of the criticism of the documents' authenticity centered on the fact that they did not look like typical typewritten documents and appeared very similar to documents ...
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In business, an MoU is typically a legally non-binding agreement between two (or more) parties, outlining terms and details of a mutual understanding or agreement, noting each party's requirements and responsibilities—but without establishing a formal, legally enforceable contract (though an MoU is often a first step towards the development of a formal contract).
The stronger version, the letter of comfort, indicates the parent organization's intention to support the subsidiary. [5] In the United States, there is a general presumption against the enforceability of letters of comfort. However, depending on the wording of the document, there may be legal liability under the rule of reliance. [6]
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"The president and I have literally not discussed one word about the ethics report,” Johnson told CNN’s State of the Union yesterday. “Not once.” Here’s more from John Bowden .