Be sure to insert a section on potential disputes and their resolution. Also write about the possible termination of the contract and under what circumstances it may occur. A Memorandum of Understanding is an agreement that is not legally binding and is a presentation of expectations. In contrast, a contract describes certain legally enforceable obligations. If the obligations under the treaty are not fulfilled, the suffering party has the right to lodge a complaint. MOAs are used for everything from pre-employment contracts to buying a home, to large research and development projects in industry and science, even for contractors who work on DIY projects. The purpose of the agreement indicates why the agreements are written. It must contain a detailed description of the roles and responsibilities of all parties, the duration of the agreement and, if applicable, the payment plan.