Contracts
Heads of terms
A short document setting out the main agreed points of a deal before the full contract is drafted. Mostly not legally binding. Similar to a letter of intent or term sheet.
A plain-English explanation of how this usually works, not legal advice. Rules differ between countries and change over time, so check your own situation. Disclaimer.
You'll hear it as
We've agreed heads of terms; lawyers are drafting the full contract.
Also called Letter of intent, Term sheet.
Related terms.
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