Contract Approval Term Sheet
Contract Approval Term Sheet
I. Introduction
This Term Sheet ("[Your Company Name] - [Counterparty Company Name] Term Sheet") outlines the key terms and conditions of the proposed contract between [Your Company Name] and [Counterparty Company Name]. It serves as a preliminary agreement between the parties, detailing the main points of the contract before a formal agreement is drafted. This document is not legally binding except for the provisions explicitly stated as such.
II. Parties Involved
The parties to this agreement are as follows:
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[Your Company Name]: [Brief description of your company]
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[Counterparty Company Name]: [Brief description of counterparty company]
III. Scope of Agreement
This section outlines the scope and purpose of the agreement.
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Services/Product: The agreement pertains to the [services/products] provided by [Your Company Name] to [Counterparty Company Name].
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Term: The initial term of the agreement shall be [duration], commencing on [start date] and terminating on [end date], unless terminated earlier as per the terms herein.
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Renewal: The agreement may be renewed for successive terms upon mutual agreement of both parties.
IV. Financial Terms
This section outlines the financial terms and considerations of the agreement.
A. Pricing
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Unit Price: The unit price for [services/products] shall be [price].
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Payment Terms: Payment shall be made [payment terms].
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Invoicing: Invoices shall be issued [frequency] and shall be payable within [payment period] days.
B. Additional Costs
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Travel Expenses: Any travel expenses incurred in the performance of services shall be reimbursed at actuals.
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Taxes: All prices are exclusive of applicable taxes, which shall be borne by [Counterparty Company Name].
V. Deliverables and Milestones
This section outlines the deliverables and milestones agreed upon by the parties.
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Deliverables: The deliverables shall include [list of deliverables].
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Milestones: The project shall be completed by the following milestones:
|
Milestone |
Description |
Due Date |
|---|---|---|
|
1 |
[Description of Milestone 1] |
[Due Date] |
|
2 |
[Description of Milestone 2] |
[Due Date] |
|
3 |
[Description of Milestone 3] |
[Due Date] |
VI. Confidentiality
This section addresses the confidentiality obligations of both parties.
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Confidential Information: Each party agrees to maintain the confidentiality of any proprietary or confidential information disclosed by the other party.
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Exceptions: Confidential information shall not include information that is publicly available or becomes known to the receiving party through lawful means.
VII. Governing Law and Dispute Resolution
This section specifies the governing law and mechanism for resolving disputes.
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Governing Law: This agreement shall be governed by and construed by the laws of [jurisdiction].
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Dispute Resolution: Any disputes arising out of or relating to this agreement shall be resolved through [mediation/arbitration/litigation], as per the choice of the aggrieved party.
VIII. Miscellaneous
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Assignment: Neither party may assign or transfer its rights or obligations under this contract without the prior written consent of the other party.
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Entire Agreement: This Term Sheet constitutes the entire agreement between the parties and supersedes all prior and contemporaneous agreements, representations, and understandings, whether oral or written.
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Amendment: Any amendment or modification of this contract must be in writing and signed by both parties.
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Severability: If any provision of this contract is held to be invalid or unenforceable, the remaining provisions shall continue to be valid and enforceable to the fullest extent permitted by law.
