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Union contracts for local government agencies can last up to three years or longer. During negotiations for a new agreement, issues may arise that require discussion and mutual agreement between the agency and the union while the current contract is still effective. These agreements are formalized through a Memorandum of Understanding (MOU), which acts as an amendment to the collective bargaining agreement. An MOU addresses specific issues that occur during the contract term and reflects the mutual understanding of both parties. Other terms for similar agreements include Memorandum of Agreement (MOA), Letter of Understanding (LOU), or Letter of Agreement (LOA). Typically, an MOU is drafted instead of redrafting the entire union contract.