This article posted to our partner site Mondaq.com discusses the legal risks associated with letters of intent or term sheets, namely, that they can be found to be a binding agreement between the parties.
\nCases dealing with this issue normally turn on the language of the letter, as well as the oral communications and actions of the party. The article also suggests dividing the document into two (2) distinct sections and labelling them as ”binding provisions” and ”non-binding provisions” in order to avoid any unwanted consequences.
","frontmatter":{"title":"Blog Bite: Are term sheets binding?","date":"June 18, 2018","description":"This article discusses the legal risks associated with letters of intent or term sheets, namely, that they can be found to be a binding agreement between the parties.","author":{"id":"cmcivor@cobaltcounsel.com","first":"Chris","last":"McIvor","bio":null,"image":null},"tags":["Term Sheet","Investor Term Sheet","cmcivor"]}}},"pageContext":{"slug":"/blog-bite-are-term-sheets-binding/","previous":{"fields":{"slug":"/blog-bite-when-will-a-term-sheet-be-considered-binding/"},"frontmatter":{"title":"Blog Bite: When will a term sheet be considered binding?","tags":["Term Sheet","Investor Term Sheet","cmcivor"],"author":{"id":"cmcivor@cobaltcounsel.com","first":"Chris","last":"McIvor"}}},"next":{"fields":{"slug":"/blog-bite-how-can-investors-use-drag-along-provisions-to-address-their-exit-expectations/"},"frontmatter":{"title":"Blog Bite: How can investors use drag-along provisions to address their exit expectations?","tags":["Term Sheet","Shareholders Agreement","Investor Term Sheet"],"author":{"id":"cmcivor@cobaltcounsel.com","first":"Chris","last":"McIvor"}}}}}}