A Heads of Agreement is a non-binding document that defines the basic terms of a preliminary partnership agreement or transaction. Also known as “Heads of Terms” or “Letter of Intent”, a “Heads of Intent” marks the first step towards a fully binding agreement or contract and a directive on the roles and responsibilities of the parties to a potential partnership before binding documents are developed. Such a document is often used in commercial transactions, for example. B when buying a business. Formal and legally binding contracts must be followed by the agreement of the managers of the conditions. But often, companies go further and use heads of agreement for purposes that go beyond their primary purpose. The term “Heads of Agreement” is most often used in Australia, New Zealand and the United Kingdom. Trade between the negotiating parties is a means of reaching the above-mentioned “trade agreement”. They are the same as terms and convention heads: a document presented in another format: letter. This type of agreement is generally referred to as a “procedural agreement” because it sets out in writing the process by which the parties have agreed that they will endeavor to finalize the documentation of a transaction. Of course, this does not immediately oblige the parties to carry out the transaction as set out in the roadmap, but it does require them to do everything in their power to formalize a full agreement on the basis of these conditions and, where appropriate, to oblige them to comply with obligations such as confidentiality and exclusivity.
Agreement heads are often used in a large number of corporate transactions as precursors to binding formal documentation. As a general rule, a heads of agreement related to the sale of companies or shares is supposed to be a non-binding summary of the main terms of the proposed transaction. They are often initiated at an early stage of negotiations to ensure that intentions between the parties are sufficiently coordinated to proceed with the necessary diligence and documentation. As a general rule, it is only the obligations of confidentiality and exclusivity contained in an agreement that must be binding on the parties. These are all different expressions that mean the same thing: pre-agreements or pre-contractual agreements. . . .