Memorandum of Understanding helps in building relations as it sets the intention of both the parties and helps in understanding each other’s goals better.  MOU brings in clarity and removes any uncertainty by mapping out the terms clearly. Although MOU is not legally binding, it is useful as it records what has been agreed upon during negotiations. MOU can be extremely helpful when in future the parties skip out a few terms in the agreement, MOU can be referred to and relied upon to understand the intention of the parties.