term-sheet

Vocabulary Word

Definition

'Term sheet' is a document that outlines the basic terms and conditions under which a deal will be made. It's like the blueprint of an agreement before it becomes official. It's commonly used in business deals or investments.

Examples in Different Contexts

In mergers and acquisitions, a 'term sheet' provides a summary of the terms of a potential purchase or merger agreement. A corporate lawyer might say, 'Reviewing the term sheet carefully is crucial to understanding the expectations and obligations of both parties before proceeding.'

Practice Scenarios

Innovation

Scenario:

The collaborative project with the other company is almost ready to kickoff. It's time we outline our respective roles and responsibilities.

Response:

Creating a term sheet will certainly streamline the process and set clear expectations for the project.

Business

Scenario:

The investors are quite interested and want to proceed further. We need to put together a draft of the main deal points.

Response:

I'll start drafting the term sheet outlining the key conditions of our deal.