A truly stunning display of ignorance, Trump doesn't know what an MOU is

[Ms. Toad]

56. I have an advantage -

as former outside counsel for a company that liked to describe themselves as a "fortune 1000" company and dealt regularly with both other companies and with state and federal governmental units I've written quite a few, none of them binding. I also currently teach contract law (among other subjects).

As to your first scenario, your PO is an offer, which the vendor accepts by either promising to ship or shipping (assuming the subject matter is the goods). You're actually likely creating multiple binding contracts is PO + the MOU provisions that are incorporated by reference that were accepted by eihter shipment or promise to ship by the vendor. The catch is that you could send a PO (an offer), and the vendor could just refuse to respond, and not be in breach (as a general rule) because the MOU does not (generally) create a binding obligation.

As to your second note - determation of whether something (scribbles on a napkin, a phone call, or even an MOU) is a contract all depends on what a reasonable person would determine the parties intended. So yes - an MOU can be a contract if the parties intend it to be one and its terms are specific enough to permit enforcement. But companies I've worked with generallly use them because they are expressly trying to avoid a contract for one reason or another.