An «opinion» is an instrument that allows EU institutions to make a declaration without imposing a legal obligation on the subject of the opinion. An opinion is not binding. Since a contractual condition generally has strong legal consequences, provided that any agreement is «subject to authorisation» (for example. B, the shareholder or board of directors or the representative of a parent company) and that there are effective «contractual» means to determine the non-binding nature of a LOI. Other conditions, usually contained in non-binding legislation, include a reasonably satisfactory result of due diligence investigations and the inclusion of a works council. The terms of a letter of intent may relate to two or three different objects, one the Memorandum of Understanding itself and the other the expected final agreement (and their completion). As a result, the ACT may indicate that a transaction is subject to due diligence, contractual obligation and financial resources; while the LOI may also declare that the binding agreement (or the implementation of the commitments in the final agreement) is subject to regulatory approvals and payment of the purchase price. A treaty is negotiated by a group of countries, either through an organization created for this purpose or by an existing body such as the United Nations Council on Disarmament (UN). The negotiation process can take several years depending on the subject of the treaty and the number of participating countries. At the end of the negotiations, the treaty will be signed by representatives of the governments concerned. Conditions may require that the treaty be ratified and signed before it becomes legally binding. A government ratifies a treaty by tabling a ratification instrument in a treaty-defined location; the ratification instrument is a document containing formal confirmation of the Government`s acceptance of the provisions of the treaty. The ratification process varies according to national laws and constitutions.

In the United States, the president can only ratify a treaty after receiving the «consultation and approval» of two-thirds of the Senate. Under international law, a treaty is a legally binding agreement between states (countries).