Free Commercial Term Sheet

I. Introduction

This Term Sheet ("Term Sheet") sets forth the proposed terms and conditions for the commercial transaction between [Your Company Name] and [Counterparty Name]. This document is not legally binding and is intended for discussion purposes only. The parties agree that neither shall be bound by this Term Sheet until a formal agreement is executed.

II. Parties Involved

This section identifies the parties involved in the agreement. Clearly state the legal names and roles of each party. Include contact information such as addresses, phone numbers, and email addresses.

• [Your Company Name]: The legal entity agreeing.

• [Counterparty Name]: The other party involved in the agreement.

III. Transaction Overview

• [Your Company Name], a leading provider of [Products/Services], proposes to engage in a [Nature of the Transaction] with [Counterparty Name].

• The transaction will involve [Scope of the Transaction].

• The parties intend to negotiate a definitive agreement ("Definitive Agreement") detailing the terms and conditions of the transaction.

IV. Key Terms

1. Transaction Structure: The transaction shall be structured as [e.g., an asset purchase, licensing agreement, joint venture, etc.].

2. Consideration: In consideration for the transaction, [Counterparty Name] shall provide [Describe Consideration] to [Your Company Name] in the amount of [Insert Amount or Method of Calculation].

3. Term: The term of the transaction shall commence on [Start Date] and shall continue until [End Date] unless earlier terminated by the terms of the Definitive Agreement.

4. Delivery Schedule: The parties shall agree upon a mutually acceptable delivery schedule for [Specify Deliverables, Products, or Services] within [Timeframe].

5. Payment Terms: Payment shall be made [Specify Payment Terms].

V. Confidentiality

[Your Company Name] and [Counterparty Name] shall maintain the confidentiality of all non-public information disclosed during negotiations and shall not disclose such information to any third party without the prior written consent of the disclosing party.

VI. Governing Law and Jurisdiction

• This Term Sheet shall be governed by and construed by the laws of the State of [State/Country], without regard to its conflict of law principles.

• Any dispute arising out of or in connection with this Term Sheet shall be subject to the exclusive jurisdiction of the courts of [Jurisdiction].

VII. Miscellaneous

• This Term Sheet may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute the same instrument.

• This Term Sheet may not be amended or modified except in writing signed by both parties.

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