Heads of agreement example free

Other Names: Term Sheet Heads of Agreement HOT Letter of Intent Memorandum of Understanding MOU Comfort Letter Pre-contract Protocol

What we'll cover

• About Heads of Terms
• Heads of Terms FAQs
• Heads of Terms checklist

What are Heads of Terms?

Heads of Terms set out the key terms that are the basis on which two parties intend to form a contract. A Heads of Terms agreement acts as a non-binding, preliminary step, which is to be followed by the formation of a legally binding contract. Heads of Terms can include legally binding obligations of confidentiality, exclusivity and non-solicitation.

When should I use Heads of Terms?

Use these Heads of Terms:

• if you are interested in signing an agreement with another business
• to formalise ongoing discussions with another business
• to record what has been agreed, before a legally enforceable agreement is drawn up
• to protect your valuable business information and key employees during negotiations