Letter of understanding
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.
The LOU may provide for example:
- Belew, Shannon (2018). "Benefits of Developing a Written Consulting Contract". About.com. Consulting.