Heads of Terms
The devil is in the detail
You may need Heads of terms, sometimes called a Memorandum of understanding (MOU), or letter of intent, if you are negotiating a complicated or detailed project and would like to record the main critical points of the deal such as price, and what is being bought or sold or timescale in advance.
Whilst Heads of Terms are not legally binding documents, agreeing one will make it harder to renegotiate these terms later on as the other party will be ‘morally’ committed.
Heads of terms can be particularly useful when negotiating complex transactions such as Joint Ventures, and Business Acquisitions and can save a lot of time allowing you to focus on the details of the transaction.
Our involvement in the detail of these negotiations can often save time and money later on. If you would like to know if Heads of Terms are right for you please contact Caroline Wilton