A term sheet is a vital tool utilized in numerous types of business transactions.[1] In its simplest form, a term sheet—also known as a memorandum of understanding or a letter of intent—is an agreement in principle, on the intended terms of a transactions. They usually have very little legal weight behind them and are mostly intended as a means of summarizing the fundamental points of the agreement and demonstrating that both parties are serious about making a deal.
Term sheets come in many styles, and can be as complex or simple as the parties to the transaction desire them to be. Term sheets are generally optional, so it is important for any company that is seeking to execute a transaction with another company carefully consider the pros and cons of using this summarized agreement.
Learn about the pros and cons of beginning your transaction with a term sheet by reading our blog article.
Make an appointment with J. Muir & Associates for help deciding what your specific term sheet should include, as well as help creating those agreements, by clicking here.
