Letter of understanding
A Letter of Understanding or LOU is a formal text that sums up the terms and understanding of a contract which mostly has been negotiated up to this point only in spoken form. 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.
The LOU may provide for example:
- detailed summary of the work to be performed
- tasks of the service provider and the receiver
- milestones for the work to be done
- work steps that have been accomplished already
The Letter of Understanding may also introduce key contractual elements, like payment terms.
External links
This article is issued from Wikipedia - version of the 7/11/2016. The text is available under the Creative Commons Attribution/Share Alike but additional terms may apply for the media files.