DictionaryunderstandingInformal agreement
noun

understanding

An informal agreement between people.

The neighbors reach an understanding about the shared path.

Etymology

Understanding can mean a shared grasp of a situation. That mutual recognition developed into an informal agreement that need not be fully written out.

More examples

  • They had an understanding rather than a signed contract.
  • Several informal understandings guided the work.
  • She thought their understanding was clear.

Forms

understanding · understandings

Similar words

agreement
A shared decision that may be formal or informal.
arrangement
A practical agreement about how something will work.