Understanding

An ambiguous word, unless accompanied by an expression showing that it constitutes a meeting of minds as to something respecting which the parties intend to be bound. It may be used to express the expectation of confidence upon which parties frequently are willing to rely without their exacting a binding stipulation. "Understanding" and "agreement" are synonymous. An understanding is "anything mutually understood or agreed upon." "It is understood," in ordinary use, when adopted in a written contract, has the same force as "it is agreed." It falls short of alleging a distinct, express contract.' Expresses a valid contract engagement of a somewhat informal character." See Assent; Promise.