Commercial agreements & supporting documents · Core
Heads of terms
Also called: heads of agreement
ELI5
A summary of proposed commercial terms used before full documentation, often in UK/Commonwealth practice.
Used in conversation
“Can we circulate heads of terms with the assumptions and open questions marked?”
Pitch context
You will see “Heads of terms” in board papers, contracts, policies, risk registers and compliance reports when the discussion reaches commercial agreements & supporting documents.
Why it matters: In commercial agreements & supporting documents, a loose definition can change rights, obligations, approval, disclosure or enforceability.
Caution
Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.
Connected terms
- Term sheetThe search label “Heads of terms” can route to both entries.
Sources & evidence · 5
Direct term-level sources and supporting source families.
- U.S. Acquisition.gov — Federal Acquisition Regulation Part 15 — Contracting by NegotiationDirect source · primary · checked 2026-08-16
- UK Government — Groceries Supply Code of PracticeDirect source · primary · checked 2026-08-16
- OECD — G20/OECD Principles of Corporate Governance 2023Supporting source family · institutional · checked 2026-08-16
- U.S. Securities and Exchange Commission — EDGAR and filing resourcesSupporting source family · primary · checked 2026-08-16
- National Institute of Standards and Technology — Computer Security Resource Center GlossarySupporting source family · primary · checked 2026-08-16