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. [1]
The LOU may provide for example:
- Detailed summary of the work to be performed
- Tasks of the service provider and the receiver
- Milestones for the work to be done
- Work steps that have been accomplished already
References
- ^ Belew, Shannon (2018). "Benefits of Developing a Written Consulting Contract". About.com. Consulting.
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. [1]
The LOU may provide for example:
- Detailed summary of the work to be performed
- Tasks of the service provider and the receiver
- Milestones for the work to be done
- Work steps that have been accomplished already
References
- ^ Belew, Shannon (2018). "Benefits of Developing a Written Consulting Contract". About.com. Consulting.