When Term Sheets Attack: Timely Reminders to Take Care in Drafting Letters of Intent and Term Sheets


Letters of intent and term sheets have long been utilized by parties to “jump-start” a transaction by delineating the transaction’s basic terms and setting forth a timeline and parameters for negotiations between the parties. Letters of intent and term sheets are typically intended to be no more than preliminary outlines of a transaction or arrangement. However, deal makers must not overlook the fact that, depending on how they are drafted, these types of documents, or at least certain provisions of these documents, may subsequently be argued by a party to include legally binding obligations. This may hold true even in the case of a simple agreement to negotiate.

Please see full newsletter below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Manatt, Phelps & Phillips, LLP | Attorney Advertising

Written by:


Manatt, Phelps & Phillips, LLP on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.