What is a Term sheet?

A term sheet is a non-binding agreement setting forth the basic terms and conditions under which an investment shall be made. It is a template to develop more detailed legal documents. The parties involved reach an agreement on the details laid out in term sheer, a binding agreement or contract conforms to term sheet.

Advantages of term sheet

Eliminates expenses: it helps in reducing the unnecessary expenditure on the company's resources.

Time effective: It saves a lot of time and specifies all the basics of the contract.

Procedure

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