Which of the following terms best describes an understanding that is not legally binding?

The term that best describes an understanding that is not legally binding is a memorandum of understanding (MOU). An MOU typically outlines the intentions and agreements between parties but is generally not considered a legally enforceable contract. It serves as a way to clarify the terms of a partnership or collaboration without creating the binding obligations that a formal contract would entail.

In contrast, a contract is a legally binding agreement that outlines specific obligations that the parties are required to fulfill. An agreement, while it can be a general term for any understanding between parties, does not inherently indicate a lack of legal enforceability. Similarly, an enforceable commitment indicates that there are specific terms and conditions that are legally binding. Thus, an MOU is distinct in its purpose of conveying a mutual understanding while intentionally not creating legal obligations.