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Heads of terms lay out the key points of a planned deal or agreement before creating the final contract. In Singapore's business world, they're often called "memoranda of understanding" or "letters of intent" - setting the stage for negotiations while letting both sides explore the deal without full legal commitment.

These documents typically cover essential elements like price, timeline, and basic terms, giving parties a clear framework to work from. While usually not legally binding in Singapore (except for specific clauses like confidentiality), they help prevent misunderstandings and speed up the path to a formal contract. Many local businesses use them for property deals, joint ventures, and major commercial transactions.

Use Heads of terms when planning complex business deals in Singapore that need careful structuring before finalizing - like joint ventures, property developments, or major supplier agreements. They're especially valuable when dealing with international partners or when negotiations might take months to complete.

Draft them early in discussions to capture key commercial points and build momentum while protecting confidential information. A well-timed Heads of terms helps avoid misunderstandings, saves legal costs, and keeps negotiations on track. Many Singapore businesses use them for high-value transactions or when dealing with multiple stakeholders who need clear direction before investing in detailed contracts.

• Basic Commercial Heads: Used for straightforward business deals, covering essential terms like price, timeline, and basic obligations
• Binding Framework Heads: Include specific enforceable clauses (like confidentiality and exclusivity) while keeping main terms non-binding
• Property Transaction Heads: Tailored for real estate deals with detailed property descriptions, payment structures, and conditions precedent
• Joint Venture Heads: Focus on ownership splits, management rights, and key operational decisions
• Investment Term Sheets: Commonly used for funding rounds, detailing valuation, investor rights, and exit mechanisms

• Business Executives: CEOs, Managing Directors, and senior management who initiate deals and approve key commercial terms in Heads of terms negotiations
• Corporate Lawyers: Draft and review the document, ensuring it aligns with Singapore law while protecting their client's interests
• Investment Bankers: Often coordinate deal terms and use Heads of terms to structure complex transactions
• Property Developers: Rely on these agreements for large real estate projects and joint developments
• Business Development Teams: Work with legal teams to outline commercial terms and negotiate preliminary agreements

• Core Business Terms: Gather key commercial points like price, timeline, and deliverables before starting your draft
• Party Information: Collect full legal names, registration numbers, and authorized representatives of all involved entities
• Deal Structure: Outline the transaction's basic framework, including any conditions or major dependencies
• Binding Elements: Identify which terms need legal force (like confidentiality) versus non-binding discussion points
• Timeline Planning: Map out key dates, including when the final agreement should be signed
• Document Generation: Use our platform to create a legally-sound Heads of terms that includes all essential elements

• Party Details: Full legal names, registration numbers, and addresses of all entities involved
• Subject Matter: Clear description of the proposed transaction or arrangement
• Key Commercial Terms: Essential business points including pricing, timelines, and deliverables
• Binding Provisions: Specifically marked confidentiality, exclusivity, and costs clauses
• Non-Binding Statement: Clear indication that main terms are not legally binding
• Governing Law: Express choice of Singapore law and jurisdiction
• Duration: Validity period and conditions for extension or termination
• Execution Block: Proper signature sections for authorized representatives

Heads of terms are often confused with Terms and Conditions, but they serve distinctly different purposes in Singapore's legal landscape. While both documents outline agreements, their scope, timing, and legal effect differ significantly.

• Legal Binding Nature: Heads of terms are typically non-binding preliminary agreements (except for specific clauses), while Terms and Conditions are fully binding contracts
• Timing and Purpose: Heads of terms come early in negotiations to outline key points for future detailed agreements, whereas Terms and Conditions serve as final, operational rules
• Level of Detail: Heads of terms contain broad commercial points and key deal terms, while Terms and Conditions include comprehensive operational details and specific obligations
• Usage Context: Heads of terms are used for specific business deals or transactions, while Terms and Conditions govern ongoing business relationships or service provisions