Legal Due Diligence · glossary

Heads of terms

A short, mostly non-binding document in which the parties record the intended price and main terms before the full contract is drafted. Sunrise's set a price of €42 million. Chapter 1

Explained in Chapter 1, What Due Diligence Is For, of Legal Due Diligence.

The main page for this term is Heads of terms, in M&A Foundations.

How it comes up, in Chapter 1
Diligence runs between agreeing a deal in outline and signing it. Before it starts, the buyer signs a confidentiality agreement (NDA), promising not to use or pass on what it reads. The parties also agree non-binding heads of terms, which record the intended price and main terms.
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Where this term lives

This term is part of one complete fictional deal, with every document attached and a test after every chapter. Open Legal Due Diligence → · All terms A–Z →