The term understanding is ambiguous; In order to determine whether a particular agreement would constitute a legally binding contract for the parties involved, it is necessary to examine the circumstances to determine whether there has been a convergence of minds and an intention to be bound. Appreciation, aptitude, competence, competence, madness, clear interval, mental capacity, mental incompetence, healthy mind, testamentary capacity. In contract law. It is a vague and ambiguous term, unless accompanied by an expression showing that it represented a union of the parties` opinions on something by which they wanted to be bound. Camp v. Waring, 25 Conn. 529. However, it can be an informal agreement or an agreement on their terms. See Barkow v.

Sanger, 47 Wis. 507, 3 n. W. 10. It means understanding, knowing, being aware of it and having the knowledge. Supported by Black`s Law Dictionary, Free 2nd ed., and The Law Dictionary. A general term that refers to an express or implied written or verbal agreement.