Binding Term Sheets Clause Samples
A Binding Term Sheets clause establishes that the terms outlined in a term sheet are legally enforceable between the parties. In practice, this means that once both parties sign the term sheet, they are obligated to proceed with the transaction or agreement as described, rather than treating the document as a non-binding summary. This clause ensures that preliminary negotiations are solidified into a commitment, reducing uncertainty and preventing either party from backing out after reaching consensus on key terms.
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Binding Term Sheets. It is recorded that in respect of some of the Transaction Documents the Parties have negotiated term sheets, which are attached hereto in agreed form under Schedule 4 (the “Term Sheets”). As of Signing, the Parties shall negotiate in good faith definitive agreements in respect of the Term Sheets. If, notwithstanding Clause 3.1.8, Closing occurs but the Parties have not negotiated definitive agreements in respect of one or more of the Term Sheets, the Parties shall continue to negotiate in good faith definitive agreements in respect thereof and, unless otherwise agreed in writing, subject to and as of Closing, until signing of such definitive agreements the relevant Term Sheets (as supplemented by such further terms as may have been agreed to prior to Closing) shall be binding.