Introduction
This Heads of Agreement and Memorandum of Understanding (MOU) is designed to document the key terms agreed between parties before entering into a formal contract.
It provides a clear framework for recording the commercial understanding between the parties, including the essential terms that will form the basis of a future binding agreement.
The document can be used as a standalone binding agreement or as an interim step while a more detailed contract is prepared.
This template includes provisions for documenting agreed terms, allocating costs and preparing a formal contract to follow.
This document provides a practical way to formalise commercial negotiations early, reducing uncertainty and helping ensure both parties are aligned before committing to a full agreement.
What is a Heads of Agreement or MOU?
A Heads of Agreement or Memorandum of Understanding (MOU) is a document that records the key terms agreed between parties before a formal contract is finalised.
It is commonly used in commercial transactions to outline the proposed deal structure, responsibilities and expectations of each party.
Depending on how it is drafted, a Heads of Agreement may be legally binding or non-binding.
Professionally Drafted Legal Precedent
Prepared by experienced Australian commercial lawyers, this precedent provides a comprehensive and reliable framework for real-world use.
The document is fully editable in Microsoft Word and includes an Editing Legal Documents Guide to assist with completing and tailoring the agreement.
Designed for immediate use, it can be adapted to suit a wide range of legal and commercial scenarios.
At A Glance
What This Document Covers
• Agreement in principle between parties
• Key commercial terms
• Framework for future contract
• Allocation of costs
• Interim binding arrangement
Key Provisions Included
• Heads of agreement structure
• Terms of proposed contract
• Cost-sharing provisions
• Annexure for formal agreement
• Execution as a deed
Typical Use
• Business transactions
• Joint ventures
• Commercial negotiations
• Pre-contract agreements
• Early-stage deal structuring
Download Details
• Professionally drafted legal precedent• Suitable for Australian use
• Fully editable Microsoft Word document
• Includes Editing Legal Documents Guide
• Instant download available immediately after purchase
Drafted by Legal Professionals
Our precedents are prepared by Australian legal practitioners and reflect commonly used legal drafting standards.
Practical and Easy to Use
Each template provides a structured framework that can be adapted to suit the specific transaction or matter.
Instant Access
Download immediately after purchase and edit the document in Microsoft Word to suit your requirements.
Related Precedents
Also Known As
This document may also be referred to as:
• Heads of agreement template
• Memorandum of understanding (MOU)
• Agreement in principle
• Preliminary agreement
• Term sheet (informal equivalent)
Frequently Asked Questions
Is a Heads of Agreement legally binding?
It can be either binding or non-binding depending on how it is drafted and the intention of the parties.
When should I use a Heads of Agreement?
It is typically used when parties have reached agreement in principle but want to document key terms before entering into a full contract.
What is the difference between a Heads of Agreement and a contract?
A Heads of Agreement outlines the key terms, while a formal contract provides detailed and comprehensive legal provisions governing the arrangement.
Is this document editable?
Yes. The document is fully editable in Microsoft Word and can be tailored to suit your specific transaction or arrangement.
Heads of Agreement / MOU – Instant Download
• General Heads of Agreement template
• Suitable for commercial negotiations
• Includes structure for formal contract
• Includes cost allocation provisions
• Includes Editing Legal Documents Guide
• Fully editable Microsoft Word document
• Suitable for Australian legal use
• Instant download available immediately after purchase
Used by lawyers, businesses and commercial operators across Australia.
Download This Precedent
Instant download. Fully editable Microsoft Word format. Includes practical drafting guidance.