Memorandum of understanding MoU
The UN Procurement Practitioner's Handbook, produced by the Interagency Procurement Working Group (IAPWG) in 2006 and updated in 2012 defines a memorandum of understanding (MoU) as: ‘…either (i) an informal agreement outlining the parties' expectations, commitment and longer-term goals in broader rather than specific terms or (ii) a legally binding contract, generally used when the contracting party is a non-commercial model. The language of the MoU may determine whether it is legally binding on either party.’
Functional Standards Common Glossary, published by the Cabinet Office, states: ‘The MOU documents the common intent of both parties regarding the commissioning and delivery of the internal audit service, and provides a framework and set of principles to guide the parties in the working arrangements.’
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