What is a term sheet?
A term sheet is a short document that sets out the main terms of a deal before the full legal agreements are drafted. It helps both sides confirm they agree on the key points, such as who is involved, what is being done and on what terms, before spending time and money on lawyers.
Most of a term sheet is not legally binding. It records what the parties intend to agree, but no one is obliged to go ahead with the deal until the final agreements are signed. Only the terms the term sheet specifically says are binding can be enforced. These are usually protective terms, such as confidentiality and exclusivity.
It takes about 10 minutes to answer the questions. You can skip anything that hasn't been agreed yet.
This tool helps you prepare a draft term sheet. It is not legal advice. We recommend having a lawyer review the term sheet before you sign it.
A draft term sheet, assembled from Founders Doc’s master — reviewed by a qualified lawyer before use. Terms
Set-up
Parties
The deal
Timing
Law and disputes
Key terms
Conditions
Signing and closing
Protections