In this context, it can be concluded that the applicability and binding nature of an agreement depends on the content, nature of the agreement, language and intent of the parties. In cases where the agreement is in the nature of a contract and fulfils its essential conditions, it will be considered enforceable. The intention of the parties in the implementation of the agreement and its conduct after its implementation are an important factor in deciding whether an agreement would be binding. In addition, in the case of Bilante INTERNATIONAL LTD, Adekeye Adekeye explained. V. NIGERIA DEPOSIT INSURANCE CORPORATION8: “It is commonplace that before a contract or agreement has been wrongly concluded, there is a clear and precise offer and unconditional acceptance of the terms agreed by the parties. In other words, the contracting parties must agree on the conditions they have freely and voluntarily agreed. An agreement is an expressive consent. It shows that the parties have reached an agreement and are making progress. Although not legally binding, it is a serious explanation for the impending treaty. Despite the nature and primary use of an agreement, it has developed (albeit, in our view, wrongly) as a “One Size Fits All” agreement for almost every transaction imaginable. From an experienced point of view, the agreement has probably become the most frequent “agreement” between lawyers and the “agreement” generally sought by the parties on the legalization of their position.
Although there are legal distinctions between a final agreement (whatever it may be) and a declaration of intent, there can be no legal or practical difference if they are written in a similar language. What matters is whether the parties intend to be legally bound by the terms of the agreement and, if formulated in this way, a legally enforceable contract would have been created, whether or not it is called the Memorandum of Understanding. Iguh JSC, in the case of Alfotrin AG Federation – Ors7, stated that, in order for a contract to be applicable, “there must be an agreement reached that has resolved all the essential conditions to be clarified and does not leave unresolved a vital condition of no or condition.” In addition, an agreement in the preliminary phase is ideal because they do not create at first glance the definitives that individuals want to avoid in certain cases. Therefore, it leaves room, among other things, for the development of the commercial details that support the preparation and conclusion of the formal agreement. It is also an indication of a certain commitment on the part of the parties to continue the transaction. Joint Declaration of Understanding (MOU) Defines a “general area of understanding” within the authorities of both parties and no transfer of credit for services is expected.