I have to say I’ve been in government procurement for several years and we’ve always used MOU’s as the vendor’s final agreement on terms. After they sign (their last step after negotiations) we internally create a PO which has no involvement from the vendor at that point.
This says it is non-binding which is news to me.
https://legaldictionary.net/memorandum-of-understanding/
Whether a document constitutes a binding contract depends only on the presence or absence of well-defined legal elements in the text proper of the document (the so-called "four corners"
. The required elements are: offer and acceptance, consideration, and the intention to be legally bound (animus contrahendi). In the U.S., the specifics can differ slightly depending on whether the contract is for goods (falls under the Uniform Commercial Code [UCC]) or services (falls under the common law of the state).
https://en.wikipedia.org/wiki/Memorandum_of_understanding
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