Heads of terms—corporate joint venture


Published by a ³ÉÈËÓ°Òô Corporate expert
Precedents

Heads of terms—corporate joint venture


Published by a ³ÉÈËÓ°Òô Corporate expert

Precedents
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Date: [insert date]

subject to contract

    1. 1

      Introduction

      1. 1.1

        These heads of terms set out the principal terms and conditions upon, and subject to, which [insert name of first shareholder] (Party A) and [insert name of second shareholder] (Party B) are proposing to enter into a joint venture to [insert purpose of joint venture] (the Proposed Joint Venture). Each of Party A and Party B is a party and together they are the parties.

      1. 1.2

        The terms in this document are not exhaustive and[, with the exception of paragraphs 7.2, 8, 9, 10, 11 and 12,] are subject to contract and not intended to be legally binding on the parties. Neither party to this document shall be legally bound to proceed with the Proposed Joint Venture unless and until a formal written joint venture agreement is entered into.

    1. 2

      The joint venture

      Party A and Party B wish to enter into the Proposed Joint Venture to [insert purpose of joint venture and intended business and scope].

    1. 3

      Structure

      1. 3.1

        The parties intend that the Proposed Joint Venture will take

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Heads of terms definition
What does Heads of terms mean?

Heads of terms are preliminary agreements that precede substantive contract negotiations. They are also be referred to as: heads of agreement, memorandum of understanding; letters of intent; pre-contract protocol or term sheet. Heads of terms provide an outline of the commercial deal agreed between the proposed parties to a contract rather than detailing the finer points.

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