Module 3 · Chapter 10

Heads of Terms: Client Authority and Closing the Deal

A deal closes only on terms the client is allowed to agree. This chapter shows who may say yes, and the three papers that turn a yes into a deal.

≈ 8 min read 8-question test

In this chapter

  • Who may say yes for the client, and what to do when he goes too far
  • Why the heads bind nobody, while the side letter binds
  • What the handover note tells the lawyer who drafts the new contract

10.1Closing the deal in one paragraph

The talks end when both sides have agreed every point. Someone must then say yes for the client, and only the right person can.

Three papers close the deal. The heads of terms list what was agreed. A side letter settles the dispute over the summer’s service credits. Your handover note tells the lawyer who drafts the new contract what was agreed and why.

Key point

Close only on terms the client is allowed to agree. Then record them exactly, in papers that bind only what should bind.

Also in this chapter

  1. Who may say yes for the client
  2. The heads: the deal on one page
  3. The side letter settles the credits for good
  4. The handover note: what was agreed, and why
  5. Your job

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