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

  1. ↑ Belew, Shannon (2018). "Benefits of Developing a Written Consulting Contract". About.com. Consulting.
This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.