A term used mostly by Filipinos for two people who obviously like each other, but have not yet committed to a relationship. So both parties are still free to go out on dates with other people.

It's a vague area between being friends and boyfriend/girlfriend.

Basically, it's like an open relationship.

(Shortcut: MU)
Guy1: Dude, is Jess your girlfriend?
Guy2: Nah, we just have a mutual understanding.
by LastMinutePanic March 4, 2009
A term used by idiots to make playing with emotions to sound more positive but in the end, they are fooling each other and cry like an elephant when his/her partner found another idiot to play with
Dude 1: bro, I saw your girl last night with other guy and they getting frisky for being tipsy
Dude 2: naah it's okay. Probably it's her ex but I can't do anything, we just have a mutual understanding.
by FuckUBeaAndAA January 21, 2022