Heads of Terms
Heads of Terms are usually the first document produced in a commercial property transaction and these record the commercial terms agreed between the parties.
Heads of Terms are not meant to form a legally binding contract: they set out the basis on which the parties intend to enter into the deal. To ensure that you do not inadvertently enter into a contract by signing the heads, you should expressly state in the heads that the document is “subject to contract”.
If you want the terms to be confidential or to secure a period of exclusivity whilst negotiations are on-going, then you should include a statement to that effect and you should also state that this is to be legally binding.
Legal advisers are not usually involved in preparing the Heads of Terms, but it is advisable to have them look over the final draft before committing to them.
Please contact us for further information.