In economics, a statement of intent is usually a non-legally binding agreement between two (or more) parties that defines the terms and details of a mutual understanding or agreement and determines the requirements and responsibilities of each party, but does not enter into a legally enforceable formal contract (although a memorandum of understanding is often a first step towards developing a formal contract). [2] [3] A MoU is essentially, as its name suggests, the expression of the agreement between the parties. Although MOs are rarely visible in the multilateral field, transnational air agreements are in fact soft. The employment contract contains the conditions of the employment relationship. It contains details such as salary, bonus, duration of employment and especially the notice period in case the parties wish to terminate the contract. A Memorandum of Understanding (MOU) is a contract between two or more parties who are considering a research or education partnership. The Memorandum of Understanding describes the nature of the relationship established, the purpose of the relationship and the responsibilities of each party. The MoU is not a legally binding agreement and should therefore not deal with formal plans for compensation, confidentiality or intellectual property rights and licensing rights. These types of agreements are sometimes referred to as ”gentlemen`s agreements” and are usually between higher education institutions, individuals or local school districts and can sometimes be a prerequisite for applying for financial aid or a grant. The planned activity may or may not apply, as described in the Memorandum of Understanding, but there is no sanction for failure.