heads of terms

heads of terms
1) heads of terms Also known as letters of intent, memoranda of understanding, heads of agreement, letters of potential interest, term sheets or protocols. A document which sets out the terms of a commercial transaction agreed in principle between parties in the course of negotiations. Heads of terms evidence serious intent and have moral force, but do not legally compel the parties to conclude the deal on those terms or even at all.
Heads of terms are used in a variety of other transactions, including public mergers and acquisitions, joint ventures, project financing and private equity investments.
They are used for a number of purposes:
• As written confirmation of the main terms agreed in principle.
• To outline the timetable and obligations of the parties during the negotiations.
• As a framework for certain preliminary legally binding clauses such as an exclusivity agreement.
Heads of terms are commonly entered into at the beginning of a transaction, once preliminary terms have been agreed and before commencement of detailed due diligence and the drafting of definitive agreements (which is where the parties will begin to incur significant costs). The parties may enter into a series of heads of terms throughout the negotiations, particularly when negotiations are prolonged.
2) Short document that sets out the main commercial terms of the acquisition before the detailed agreements are written. Heads of terms are also called a memorandum of understanding, letter of intent, term sheet or heads of agreement. They are normally expressed to be not legally binding. However certain terms may be binding and in any event strong moral obligations can be created.
3) This is a short document that sets out the main commercial terms of a deal before a detailed contract is written. Heads of terms are also called a memorandum of understanding, MOU, term sheet or heads of agreement. They are not normally expressed to be legally binding. However certain terms may be binding and in any event strong moral obligations can be created.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Игры ⚽ Поможем написать реферат

Look at other dictionaries:

  • heads of agreement — 1) heads of terms Also known as letters of intent, memoranda of understanding, heads of agreement, letters of potential interest, term sheets or protocols. A document which sets out the terms of a commercial transaction agreed in …   Law dictionary

  • Heads of Proposals — The Heads Of Proposals was a set of propositions intended to be a basis for a constitutional settlement after King Charles I was defeated in the first English Civil War [ [http://www.british civil wars.co.uk/glossary/heads of proposals.htm Heads… …   Wikipedia

  • Heads of Agreement (law) — A heads of agreement is a non binding document outlining the main issues relevant to a tentative (partnership or other) agreement [Website Investopedia (24 Jan 2008) http://www.investopedia.com/terms/h/headsofagreement.asp] References …   Wikipedia

  • List of heads of state of the Soviet Union — Heads of state of the Union of Soviet Socialist Republics Former political post Coat of arms Predecessor …   Wikipedia

  • Anatomical terms of location — Standard anatomical terms of location are employed in science which deal with the anatomy of animals to avoid ambiguities which might otherwise arise. They are not language specific, and thus require no translation. They are universal terms that… …   Wikipedia

  • Glossary of rowing terms — In competitive rowing, the following specialized terms are important in the corresponding aspects of the sport: Boat Classes In competitive rowing events, abbreviations are used for different boat classes.;Weight: *L or Lt:Lightweight rowing *If… …   Wikipedia

  • Glossary of nautical terms — This is a glossary of nautical terms; some remain current, many date from the 17th 19th century. See also Wiktionary s nautical terms, Category:Nautical terms, and Nautical metaphors in English. Contents: A B C D E F G H I J K L M N O P Q R …   Wikipedia

  • List of terms used for Germans — There are many alternative ways to describe the people of Germany, though in English the official designated nationality as well as the standard noun is German. (see also demonym). During the early Renaissance, German implied that the person… …   Wikipedia

  • Glossary of cue sports terms — The following is a glossary of traditional English language terms used in the three overarching cue sports disciplines: carom (or carambole) billiards referring to the various carom games played on a billiard table without pockets; pool (pocket… …   Wikipedia

  • Glossary of terms in Hinduism — The following is a glossary of terms and concepts in Hinduism. The list consists of concepts that are derived from both Hinduism and Hindu tradition, which are expressed as words in Sanskrit as well as other languages of India. The main purpose… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”