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