Heads of terms
Letter of intent to buy a business in the UK: heads of terms
Updated
In the UK a letter of intent is usually called heads of terms or heads of agreement. It records the deal the buyer and seller have agreed in principle before the lawyers draft the sale agreement.
Binding or not
The commercial terms
Price, structure and timetable are normally stated to be subject to contract, so either side can still walk away.
The protective terms
Exclusivity, confidentiality and who pays which costs are normally made binding, so the document says clause by clause which is which.
Cost
From £42.50 to £500 published
The three firms we found that print a figure: £42.50 for a template, £250 for a fixed-fee consultation and £500 for legal help with a purchase. 22 others quote only on request.