According to Section 10 of the Indian Contract Act, 1872, agreements are defined – All agreements are contracts if they are concluded by the MoU: statement defining the context and the general agreements and benefits of the MoU. A brief summary of the circumstances that led to the MoU. It is worth mentioning the status of the MoO in relation to other existing agreements. In the UK, the term MoU is often used to refer to an agreement between certain parts of The Crown. This term is often used in the context of decentralisation, for example in the 1999 Concordat between the Central Ministry for Environment, Food and Rural Affairs and the Scottish Environment Directorate. Like a contract, a memorandum of understanding is an agreement between two or more parties. However, unlike a treaty, a memorandum of understanding should not contain legally enforceable commitments.