heads of terms

Heads of Terms are helpful as they ensure that both parties have agreed to the key terms before negotiating the full lease agreement. This reduces the time needed for the Landlord and the Tenant to argue over the key requirements and speeds up the drafting process of the lease. What happens when things don’t go to plan? Parties can often disagree over whether Heads of Terms are legally binding. In the recent case of Pretoria Energy Company (Chittering) Limited and Blankney Estates Limited, the Court of Appeal considered whether the parties' Heads of Terms was a binding enforceable contract [...]

What are Heads of Terms? Heads of Terms are a list of the terms agreed in principle between the landlord and the tenant, before the grant of a lease and form the basis of the terms to be included in the legal document. They can also deal with any other agreements between the landlord and tenant, such as timescales or alterations. How improving your Heads of Terms could help you There are several issues which come up in most lease negotiations. If these issues are dealt with beforehand in the Heads of Terms then this could lead to a [...]