Document background
A Head of Terms Agreement is commonly used in Singapore as a preliminary step in significant commercial transactions. This document sets out the fundamental terms agreed between parties before proceeding to detailed negotiations and final documentation. It typically includes key commercial terms, timelines, and any binding obligations such as confidentiality and exclusivity. Under Singapore law, these agreements can be partially binding, making them particularly useful for complex negotiations where parties need to establish clear parameters while maintaining flexibility for detailed terms. The document serves as a roadmap for the transaction and helps prevent misunderstandings during subsequent negotiations.
