New Heads of Terms/Memoranda of Understanding
Our Business folder now includes a new set of documents dealing with Heads of Terms and Contract Formation. The documents are designed to aid the negotiation, drafting and agreement of either a suitable pre-contract Heads of Terms document (often also called a “Memorandum of Understanding (MOU)”, “Letter of Intent (LOI)” or “Term Sheet”) and/or a full commercial contract. The documents also include a template to provide for a pre-contract “lock out” arrangement and various Guidance Notes about Heads of Terms documents, penalties in contracts, and formalities for signing contracts.
These documents between them cover a range of common commercial arrangements.
These new comprehensive templates will be of considerable practical use in that they can:
- Serve as a checklist so that you can conveniently identify all points to be covered by a Heads of Terms document and/or a full commercial contract;
- Provide you with draft text for a Heads of Terms where you may decide to use one;
- Contain various optional draft clauses (and alternative provisions within them) from which you can select as appropriate;
- Make it easier and quicker for you to negotiate, produce and agree a Heads of Terms where you decide to use one as a pre-cursor to producing a detailed binding contract; and
- Can be used to more easily instruct your legal advisers to draft a full commercial contract.
The contents of this Newsletter are for reference purposes only and do not constitute legal advice. Independent legal advice should be sought in relation to any specific legal matter.