Heads of Agreement
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      3. Heads of Agreement

      Retail leasing FAQ17: What is a Heads of Terms Agreement and is it legally binding?

      What is a Heads of Terms Agreement and is it legally binding?

      • When properly drafted, it’s a non-binding document which sets out the key terms of a proposed agreement to lease between the lessor and the lessee
      • It is provided to solicitors to ensure the agreed terms and conditions are inserted into the lease document
      • Its generally considered that upon signing a Heads of Agreement document, both parties are committing to enter into a lease, but it is usually worded in a way so as not to be legally binding until the lease is signed.