Memorandum of understanding (MoU), also known as Letter of Intent in India, is just a means for two parties to reach a decision. A Memorandum of Understanding or MOU Agreement is entered into when parties have agreed to enter into a contract, but the formalities (such as terms and conditions) of the contract are yet to be negotiated. It is made when two or more parties outlining the rights and obligations of the parties to the agreement are into initial discussions. It is used to gauge the intention of the transacting parties before a deal is officially signed between them and doesn't grant either of them any rights. MOU’s can be kept confidential by the parties, if desired.
It does not constitute a legally enforceable obligation but, this non-legally binding MOU may be useful to serve as an agreement between two or more departments within a single public entity.