The term sheet serves as a template and basis for more detailed, legally binding documents. Once the parties involved reach an agreement on the details laid out in the term sheet, a binding agreement or contract that conforms to the term sheet details is drawn up.

What Is a Term Sheet Template? A term sheet template is a predesigned term sheet containing the essential clauses and conditions for the investment deal. Essentially a template saves you the hassle of designing one from scratch. You customize the template with all the details that best describe your agreement.

What is a Term Sheet? A term sheet outlines the basic terms and conditions of an investment opportunity and is a non-binding agreement that serves as a starting point for more detailed agreements – like a commitment letter, definitive agreement (share purchase agreement), or subscription agreement.

When two entities would engage in an agreement and they can create a term sheet template to kick start the process. This document contains the fundamental terms and conditions of the investment opportunity they want to enter and it serves as a starting point for creating agreements with more complex details.

A project term sheet is a bullet-point document that the parties involve exchange which contains important terms and conditions of a deal. It serves as a template for mutual understanding while creating a more detailed document that would become legally binding.