RE:MOUs May be a Death Sentence An MOU serves as a foundation for business negotiations, and, is not legally binding. (Unless legally binding clauses are inserted). .. This is why Larry needs to be careful with the amount of value he attributes within these initial documents. I've seen a few MOUs amount to nil with other investments, so Larry better ensure he refrains from selling these as secured deals/agreements. .. https://corporatefinanceinstitute.com/resources/knowledge/deals/memorandum-of-understanding-mou/