The primary purpose of a Heads of Terms Agreement is to ensure that both parties are on the same page and to prevent misunderstandings or disputes later in the negotiation process. While the document itself is not legally binding, certain clauses, such as those related to confidentiality, exclusivity, and intellectual property, may be enforceable if explicitly stated. This agreement is particularly useful in complex transactions, such as mergers and acquisitions, joint ventures, or large-scale commercial deals, as it provides a structured approach to finalizing the details and moving towards a formal contract.
Heads of Terms Agreement
KShs 3,500
A Heads of Terms Agreement, also known as a Heads of Agreement or Letter of Intent, is a preliminary, non-binding document that outlines the basic terms and conditions of a proposed transaction or partnership. This document serves as a framework for the parties involved, providing a clear understanding of the key points agreed upon during initial negotiations. It typically includes details such as the scope of the agreement, the roles and responsibilities of each party, timelines, and any conditions that must be met before a final, legally binding contract is signed.
