Letter of understanding
# Letter of understanding

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
