Term sheet template — draft one in minutes
A term sheet sets out the main terms of a deal before anyone pays for the full legal documents. FD AI asks plain-English questions and drafts one in about 10 minutes; skip anything not agreed yet.
In FD AI: Singapore law, or another country's: you choose, usually where the company or the business being sold is based.
Choose your country
Somewhere else? FD AI offers many more countries and US states — choose yours in the governing-law question.
What your term sheet covers
- What the deal is
- An investment, a loan, buying or selling a business, or a partnership, described in one sentence.
- Your side
- Tell FD AI which side you are on, and the usual answers lean your way.
- The key commercial terms
- Valuation, interest, price or revenue share, depending on the deal, plus any other terms you have agreed.
- Conditions and dates
- What must happen before the deal can close, and when you aim to sign and complete.
- What is binding
- Most of a term sheet is not binding. Exclusivity, confidentiality, costs, expiry and governing law usually are, and the term sheet says so clearly.
- Law and disputes
- The country's law you choose, with disputes going to the courts or to arbitration.
When you need one
- When an investor is ready to put money in and you want the main terms agreed first
- Before buying or selling a business, or a stake in one
- When you borrow from, or lend to, a business partner
- When two companies agree to work together on a project
How it works
- Answer a few questionsPlain English, one at a time. Skip anything you are unsure of.
- FD AI drafts your term sheetFrom Founders Doc's own lawyer-written wording, shaped around your answers.
- Check, edit and downloadChange any wording, ask FD AI to explain a clause, then download it as Word.
Common questions
Is a term sheet legally binding?
Mostly not. The deal terms are usually only what the parties intend to agree. A few clauses, such as confidentiality, exclusivity and costs, are normally binding, and the term sheet should say which ones.
What comes after the term sheet?
The full agreements, such as a share subscription agreement and a shareholders' agreement for an investment. Some terms can still change while they are drafted.
How long should exclusivity last?
Long enough to finish due diligence and the documents, often 30 to 90 days. A long exclusivity period stops you talking to anyone else, so agree only what you need.
Can I edit the term sheet after FD AI drafts it?
Yes. Change any wording before you download it as a Word document, and ask FD AI to explain any clause.
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Ready to draft your term sheet?
Your first 3 documents are free · no card needed. A Founders Doc lawyer is one click away if you want a review.
This page is general information, not legal advice. Every deal is different — for advice on your situation, talk to a Founders Doc lawyer.