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About: Letter of understanding     Goto   Sponge   NotDistinct   Permalink

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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. 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