Free term sheet template overview

Term Sheet template

Term sheets summarize headline economics and governance points that will guide a definitive agreement. Like LOIs, they are often mostly non-binding except for selected protections.

Sample term sheet outline with placeholders for investment or commercial deal headlines.

TERM SHEET

This Term Sheet (the "Agreement") is entered into as of [Effective Date], by and between [Party A], [Entity Type], with an address at [Address] ("Party A"), and [Party B], [Entity Type], with an address at [Address] ("Party B").

1. Parties and transaction. This term sheet summarizes proposed terms for [Transaction Type] between [Party A] and [Party B].

2. Economic terms. Proposed economics include [Valuation or Price], [Investment Amount], and [Liquidation or Payment Waterfall].

3. Governance. Board or approval rights under discussion include [Governance Terms].

4. Binding provisions. Confidentiality and exclusivity for [Exclusivity Period] are binding; remaining terms are non-binding statements of intent.

Party A: [Party A] By: ________________________________ Name: [Signatory] Title: [Title]

Party B: [Party B] By: ________________________________ Name: [Signatory] Title: [Title]

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Keep the raw template if you like editing in Word. Or use Formable's free contract creator for guided clause choices and a filled-in draft from the same template—no paid plan required.

FAQ

  • Term sheet or LOI?

    They overlap. Term sheets are often more tabular and finance-oriented; LOIs are often more narrative. Pick the format your counterparties expect.

Sources: Baker McKenzie: Preliminary documents (term sheets and LOIs)

Next step for your TS

Download the placeholder file, or create a filled-in draft with the free contract creator—party names, purpose, and governing terms included.

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