Heads of terms

Heads of terms: a non-binding document which sets out the terms of a commercial transaction agreed in principle between parties during negotiations. It is occasionally referred to as a term sheet, heads of agreement, letter of intent or memorandum of understanding. It evidences serious intent but does not legally compel the parties to conclude the deal on those terms or even at all. However, certain provisions relating to confidentiality and costs may be made binding on the parties.