- 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 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. www.practicallaw.com. 2010.
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heads of agreement — ˌheads of aˈgreement Used to be nested under agreement . noun heads of agreement PLURALFORM [countable] LAW COMMERCE a document signed by the people involved in a deal, showing that they definitely want to be involved in it: • We have a heads of… … Financial and business terms
Heads of Agreement — may refer to: * Heads of agreement (law), a non binding document outlining the main issues relevant to a tentative (partnership or other) agreement * [Heads ofsecurity crisis in the Central American nation of Belize in March and April 1981,… … Wikipedia
Heads Of Agreement — A non binding document outlining the main issues relevant to a tentative partnership agreement. Heads of agreement represents the first step on the path to a full legally binding agreement or contract, and serves as a guideline for the roles and… … Investment dictionary
heads of agreement — noun A document stating the intent of the parties to enter into a binding agreement as outlined in the document. Finally, on July 10, 1984, Heads of Agreement were signed. Three extra drafting rounds were necessary in order to formally sign the… … Wiktionary
heads of agreement — /ˌhedz əv ə gri:mənt/ plural noun 1. a draft agreement with not all the details complete 2. the most important parts of a commercial agreement … Dictionary of banking and finance
heads of agreement — /ˌhedz əv ə gri:mənt/ noun the most important parts of a commercial agreement … Marketing dictionary in english
heads of agreement — Gen Mgt the most important elements of a commercial agreement … The ultimate business dictionary
Heads of Agreement (1981) — The Heads of Agreement was a 1981 document proposing a solution to the Guatemalan claim to Belizean territory. Created in February and signed on March 11 in London, England, the agreement sought to propose future bases for negotiations between… … 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
agreement — a‧gree‧ment [əˈgriːmənt] noun [countable] 1. an arrangement or promise to do something, made by two or more people or organizations: • Under the agreement, the company will distribute our products in North America. • What happens if the warring… … Financial and business terms