Distinguish between the following: 'Memorandum of understanding' and 'memorandum of association'.

Memorandum of Understanding A document that expresses mutual accord on an issue between two or more parties. Memorandum of understanding are generally recognized as binding, even if no legal claim could be based on the rights and obligations laid down in them. To be legally operative, a memorandum of understanding must (1) identify the contracting parties, (2) spell out the subject matter of the agreement and its objectives, (3) summarize the essential terms of the agreement, and (4) must be signed by the contracting parties. Memorandum of Association Memorandum of association of the company is the fundamental formation document. It is the constitution and charter of the company. It contains the basic conditions on the strength of which the company is incorporated. Thus, it defines and confines the area of operation of the company. It lays down the area, beyond which the action of the company cannot go. Section 4 of the Companies Act, 2013 and Table A, B, C, D and E in Schedule-I as may be applicable to such company deal with contents, form and printing and signature of memorandum of association.