See heads of terms.
Related links
+ term sheet
USA
This term has a number of meanings. In the context of:
• Corporate, it is also known as a letter of intent, memorandum of understanding, heads of agreement or heads of terms. A term sheet is a document which sets out certain terms of a transaction agreed in principle between parties in the course of negotiations. Term sheets evidence serious intent, but generally are not legally binding. Although the term sheet itself is not typically legally binding, some term sheets contain certain legally binding provisions (for example, confidentiality or exclusivity). Term sheets are used in a variety of transactions, including commercial negotiations, mergers and acquisitions, lending arrangements and joint ventures.
• Finance, a document setting out the terms on which a lender agrees to lend money to a borrower. It is attached to a commitment letter from the lender and is typically negotiated and signed at the beginning of a lending transaction.
Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010.