It must be taken as seriously as a contract, regardless of its legal situation. For this reason, just like with a contract, you need to make sure you understand all of its terms and accept them before you sign it. The touchstone for designing a good contract or memorandum of understanding is the absolute clarity of everything the document covers. In the case of a contract, this means describing exactly who, what, how, when and where of the exchange, as well as: The preparation of a memorandum of understanding is therefore similar to the design of a contract, except that the terms of the agreement have probably been discussed by all parties beforehand. Most memoranda are nothing more than attempts to clearly state in writing what the parties have already developed and agreed at meetings. .