Heads of Agreement
A Heads of Agreement is a non-legally binding pre-cursor document that you can use during the negotiation stage to record proposed terms of two parties.
4.3 (118 reviews)
Last updated October 23, 2025
Under 10 minutes
Suitable for Australia
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Document Overview
When two parties enter into negotiation for an agreement, such as the sale of a business, the parties should seek to formalise the terms of the discussion prior to signing a legally binding document. This gives the parties a chance to process what fulfilling the terms of the contract will mean, and clarify anything before it is too late to make changes. If you are interested in signing an agreement with another party, it is important to record the terms that have been agreed upon in order to protect your business assets and resolve future disputes. It works as an 'agreement to agree', however is not a legally binding contract. If the proposed agreement has a signed paper record, you are able to ensure that the execution of a legally enforceable document is smooth and minimises any potential conflict.
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