Heads of Terms and Letters of Intent in the Constitution of Contracts

Description

This Skill Bit shows that heads of terms outline key commercial terms non-bindingly, guiding the formal contract’s preparation. They’re flexible for negotiation. Conversely, letters of intent can include binding provisions like confidentiality or exclusivity, bridging to the formal contract and signaling intent to finalize terms. Both aid in clarifying early-stage agreements, but legal nuances vary by jurisdiction and document specifics, warranting legal consultation for clarity.

Duration approx. 4 Min.

Tier: advanced