What Does Non-binding Mean and Why Should I Care?
This post discusses the meaning of non-binding with respect to a letter of intent (LOI) or a memorandum of understanding (MOU). (Non-binding has a similar meaning in other legal contexts, such as legislation or arbitration, but I will not discuss those contexts here.)
Although I will refer to solely an LOI in the remainder of this post, the following pertains to an MOU, as well.
Please note that whereas “memorandum of understanding” and “letter of intent” are the terms typically used in the U.S., the corresponding term in the U.K. is “heads of terms“. (more…)
