Answer:
There is no substantial difference between a term sheet and heads of agreement. The terminology can often be used interchangeably. This document is also sometimes called a memorandum of understanding. A term sheet is often used prior to the signing of a more complicated deal or the undertaking of a large deal, for example, a sale of business, asset or share sale worth millions of dollars. The term sheet or heads of agreement will also often set out whether the document is intended to be legally binding or not.
