Memorandum

For the definition of "memorandum of understanding", in Black's Law Dictionary, 8th edition at page 1006, the reader is directed to the definition of "Letter of intent, which is found at page 924 thereof and states thus:
"Letter of intent: A written statement detailing the preliminary understanding of parties who plan to enter into a contract or some other agreement.
– A letter of intent is not meant to be binding and does not hinder the parties from bargaining with a third party. Business people typically mean not to be bound by a letter of intent and Courts ordinarily do not enforce one; but Courts occasionally find that a commitment has been made "
(Underlining mine for emphasis)
From the above definition, it is clear that a memorandum of understanding or letter of intent, merely sets down in writing what the parties intend will eventually form the basis of a formal contract between them. It speaks to the future happening of a more formal relationship between the parties and the steps each party needs to take to bring that intention to reality. From the definition given above, notwithstanding the signing of a memorandum of understanding, the parties thereto are not precluded from entering into negotiations with a third party on the same subject matter.