Document background
An Asset Purchase Agreement Term Sheet is typically used in the initial stages of an asset acquisition transaction to document the fundamental understanding between parties before proceeding with detailed due diligence and definitive agreements. This document, governed by Dutch law, serves as a roadmap for the transaction by setting out the principal terms, conditions, and timeline for the proposed asset purchase. It is particularly useful in complex transactions where parties need to align on key commercial terms before investing significant resources in detailed due diligence and documentation. The term sheet typically includes essential elements such as asset description, purchase price, payment structure, conditions precedent, and other key terms, while considering Dutch legal requirements and market practices. While most provisions are non-binding, certain sections like confidentiality and exclusivity are often made legally binding.
