Term Sheet Template
PandaTip: Often when parties are negotiating a deal they negotiate the most important details up front, and then pass that information on to the legal department or someone else to create a formal written agreement that includes the negotiated terms and standard contract language. The document listing the most important details is often called a “Term Sheet” and it is signed by all parties and legal obligations are attached to it.
On [DATE], the undersigned parties agreed to the following terms and conditions –
1. [TERM 1]
2. [TERM 2]
3. [TERM 3]
4. [TERM 4]
5. [TERM 5]
6. [TERM 6]
7. [TERM 7]
8. [TERM 8]
9. [TERM 9]
10. [TERM 10]
PandaTip: The terms should include the details of what each party is going to do, such as paying money by a certain date, delivering something, signing documents, etc. This should not be legalese, just common sense language sufficient that each party knows what to expect from each other. This must include any contentious points or deal-breaking terms for either side.
11. The terms set forth above will be incorporated into a formal written agreement within [TIMEFRAME FOR FORMAL AGREEMENT].
PandaTip: Timing can be very important to agreements, so make sure that both sides have an agreement on how long completion of the process will take.
12. [OTHER DETAILS]
PandaTip: This could include who is going to draft the agreement, or any other procedural details on the steps to convert this from a term sheet to a final executed agreement.
[SIGN DATE 1] _________________________________
[SIGN DATE 2] _________________________________
[SIGN DATE 3] _________________________________
[SIGN DATE 4] _________________________________