Best to ignore the uninformed drivel that frequently appears regarding non-binding MOUs. By strict definition, any MOU is non-binding. It is a preliminary written agreement that precedes a formal contract.
In the business world an MOU serves as a foundation for negotiations. Agreeing to an MOU means that the affected parties have already reached an understanding that is acceptable to each party. The stances of each party and the subsequent steps forward are acknowledged.
As Investopedia puts it: "An MOU is an expression of agreement to proceed. It indicates that the parties have reached an understanding and are moving forward. Although it is not legally binding, it is a serious declaration that a contract is imminent."
AM7 Price at posting:
27.0¢ Sentiment: Buy Disclosure: Held
