Heads of Terms

Definitions

1. A high-level summary of the principal commercial terms of a proposed agreement before full legal documents are completed. It is closely related to a term sheet and common in fundraising, partnerships, and acquisitions.

   In plain English: A summary of the main deal terms before the full contract is finished.

   Example: "They agreed the heads of terms quickly, then spent weeks negotiating the definitive documents."

Related Terms

• Draft Term Sheet
• Escrow
• Holdback
• Intellectual Property
• Joint Venture
• LOI
• MOU
• Right of First Refusal
• ROFR
• Safe Harbor
• Secondary Market
• Standard Terms