Heads of Terms

Heads of Terms Solicitors in Manchester, Blackburn and Lancashire

Before entering into a share or asset purchase agreement for a business, it is common for either the purchasing or selling party to agree on a number of key points known as the heads of terms.

There is no standard form for heads of terms. They can vary from a simple letter (which is probably the most common format) to a carefully drafted document prepared by advisers. Similarly, there is no convention as to who prepares the heads for an acquisition, although it is more common for this to be initiated by the buyer.

To speak to one of our friendly, expert Commercial Solicitors, get in touch today by calling 01254 297130, or by using our simple enquiry form below.

What Are the Benefits of Heads of Terms?

Heads of terms have a number of benefits for both the purchasing and selling party in a transaction, the main benefit being that each party can confidently identify and highlight the requirements within the transaction from the outset.

It should not always be assumed that heads of terms will be useful in the context of negotiating the deal and they may be of more use to one party than the other, but heads of terms can help to avoid misunderstandings and provide a useful map of the steps to be taken on the way to signing the formal agreement. If, however, negotiation of the heads of terms stalls over points of unnecessary detail (which in reality should properly be addressed at a later stage in the process) this can delay preparation of the definitive documents and increase the length and cost of the negotiations.

Whilst heads of terms do highlight serious intent from both parties and have some moral force, they do not legally compel either party to conclude the deal on the terms agreed within the heads of terms.

Heads of terms usually include the following details:

  • Details of the buyer and seller of the property
  • Details of the commercial property
  • The purchase price both parties have agreed to
  • Any special conditions
  • Transaction completion date

Contact Curtis Law Solicitors to Discuss Your Requirements Today

If you believe that your transaction could benefit from heads of terms, the team here at Curtis Law Solicitors would be more than happy to assist you. We have an experienced team of solicitors on hand to provide you with support every step of the way, so don’t hesitate to contact us.

Please feel free to call us on 01254 297130 to discuss your requirements. Alternatively, you can also get in touch by using our simple enquiry form below, and a member of our team will be in touch to discuss your case in more detail shortly.