Heads of Terms Agreement Commercial Solicitors in Essex & London
Heads of terms agreements, also known as letters of intent or memoranda of understanding, are documents highlighting the main terms of a commercial transaction.
They often address the non-negotiable areas for both parties, saving time by having these addressed from the beginning by both parties.
To find out more about how our team can help you, contact us today.
What are heads of terms?
Heads of terms set out the basic agreed terms of an agreement, allowing the parties to proceed with their negotiations into further detail. The heads of terms will include basic information about both parties, and although not legally binding, it does show the intentions of both parties at the early stages of negotiation. Expectations are set from the start, preventing negotiations from failing in the final stages.
Heads of terms are also known as letters of intent, memorandum of understanding or heads of agreement. They are different names for the same documentation, and all cover the early agreed terms of a negotiation.
What is included in a head of terms?
Within the heads of terms, typically, you will find:
● Basic information about the parties
● The purpose of the contract
● Terms of the contract, including prices and costs
● Protection for the parties
● Confidentiality agreements
Heads of terms are individual to each contract and transaction; therefore, the information included in them will differ. Often, clauses concerning other negotiations, time frames or areas where there are still to be considerable negotiations will also be included in the heads of terms.
It is also important to include a clause stating that the heads of terms are not legally binding. Although it may be clear that your intention is not to enter a legally binding contract yet, making this clear in writing will protect all parties involved.
Why choose us?
At Blacks Legal, we know time is money, and it is important to enter negotiations with a strong understanding of what you want to come away with.
With our client-friendly approach, we will always have your needs at the centre of what we do and will explain all your options clearly and concisely, giving you the tools to make the decisions that matter.
Contact our Head of Terms of Arangement Lawyers in London & Essex
Before you sign any legal document, it is always best to seek legal advice. Contact Blacks Legal today on 020 3500 7471 or complete our online enquiry form and a member of our team will get back to you.