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Save Money on Contracting with These Two Words

Reading, writing, and revising complicated business contracts: the central parts of my practice. I am often asked to prepare a written contract my client wants to send to a contract partner or to revise a contract they received from their contract partner. For these situations – there are two words that will help save my clients save money: Term Sheet.

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Term Sheet (it may also be called a Letter of Intent, Memorandum of Understanding, or other names) contains the essence of the agreement between the involved parties. The term sheet is written in basic language that emphasizes important points of the agreement to all parties involved. The idea is that the decisions-makers will work out the key points of their agreement and write them down on a Term Sheet. This is the agreement without all the legal provisos, conditions, and boilerplates. A term sheet is a page (or two) in length, and is the most efficient way for contract partners to highlight the points that are significant to include within the agreement.  Along with the terms, the contract partners should include specific directions for the attorney who is tasked with preparing the formal written contract (often, myself).

Best of all, a Term Sheet will help you save money and time:

 You can prepare a Term Sheet on your own without calling the attorney.

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