Heads of Agreement Template

Prepare the heads of agreement

Your draft

Editable heads of agreement

HEADS OF AGREEMENT
Draft for practitioner review

1. PARTIES AND MATTER
First party: Alex Example
Capacity: Executor of Example Estate, subject to confirmation of authority
Second party: Example Respondent Pty Ltd
Capacity: Company acting through its authorised director
State or territory: New South Wales
Dispute or transaction: Fictional claim for repayment of estate funds.

2. RECORDED INTENTION
The parties intend only the commitments expressly marked “intended to bind immediately” below to bind from signing these heads. The parties intend other recorded terms to create legal obligations only when the final document is prepared, approved and executed.
The selected descriptions record instructions. They do not independently determine legal effect. Review the complete wording, completeness and conduct.

3. AGREED TERMS AND SEPARATE COMMITMENTS
Financial terms: final-document condition
Settlement amount ($): 87500
Payment stages: 17500 on execution of the final deed, followed by 7 monthly instalments of 10000. First instalment one month after execution.
Payment conditions: Payment terms commence only after both parties execute the final deed. Release takes effect only after all settlement funds clear.

Other agreed terms: final-document condition
Each party bears its own costs. Proceedings remain on foot pending the final deed.

Confidentiality: intended to bind immediately
From signing these heads, each party must keep their terms confidential, except disclosure to advisers, insurers or as required by law. This obligation continues after negotiations end.

Exclusivity: omitted from these heads.

4. OPEN ISSUES
Security for the unpaid balance remains unresolved. Both solicitors to exchange proposals before the final deed is settled.
These matters remain for negotiation. No additional security or default remedy is created by this draft.

5. AUTHORITY AND APPROVALS
First party authority: Alex Example: executor authority and any required estate or court approval to be checked by the estate solicitor.
Second party authority: Jordan Example: director authority to be checked against corporate records by the respondent’s solicitor.
Approval status: Pending
Approvals and approving person: Both clients must approve the final deed. Estate solicitor to confirm whether estate or court approval is required before execution.

6. FINAL DOCUMENT AND RESPONSIBILITY
Intended document: Deed of settlement and release
Preparation and outstanding work: Respondent’s solicitor prepares the first deed within 10 business days after these heads. Estate solicitor reviews the security proposal and approval requirements.

7. SIGNING RECORD
First party signatory and capacity: Executor of Example Estate, subject to confirmation of authority
Second party signatory and capacity: Company acting through its authorised director
Record actual signatures and dates separately after practitioner review.
Saving or copying this draft neither signs nor sends it.

REVIEW CHECKLIST
Outstanding approval: confirm the approving person, required evidence and effect on each immediate commitment.
Open issues remain: resolve their effect on the agreed terms and each immediate commitment before signing.
Verify authority and execution requirements for each party and capacity. Entered names do not prove authority.

Changing an instruction replaces manual edits.

Draft prepared for review. One immediate commitment is selected.

Fictional example. Review the recorded intentions before signing.

Authority and completion checklist

Outstanding approval: confirm the approving person, required evidence and effect on each immediate commitment.
Open issues remain: resolve their effect on the agreed terms and each immediate commitment before signing.
Verify authority and execution requirements for each party and capacity. Entered names do not prove authority.

Instructions and drafts stay in this tab. Download your work before leaving.

Build the Preliminary Terms From the Instructions

This heads of agreement template separates agreed settlement terms from open issues and commitments intended to bind before the final document.

Enter each party’s legal name and capacity, then identify the dispute or transaction. Record the financial terms and other agreed terms separately.

Keep unresolved matters in the open-issues field. Name the intended final document and who will prepare it. The draft updates as you change the instructions.

You can edit the draft itself before copying or downloading it. Changing an instruction regenerates the draft and replaces manual edits, so save edited work first.

Mark Binding Clauses and Conditions Explicitly

Choose the overall intention, then mark each commitment separately. “Later” records a final-document condition. “Now” records an intention to bind from signing these heads.

Confidentiality and exclusivity each have their own timing control and wording field. “Omit” leaves that clause out of the draft.

The final-document-first intention conflicts with any “Now” selection. The tool marks both controls and withholds the draft and export until you reconcile them.

A label alone does not determine enforceability. The complete wording, certainty of terms and what the parties say or do require legal assessment.

Masters v Cameron addresses preliminary terms and a contemplated formal contract. Ermogenous explains the objective assessment of contractual intention.

For the legal effect and transition to final documents, read the heads of agreement guide.

Record Payments, Authority and Outstanding Work

The fictional example records an $87,500 settlement: $17,500 on execution of the final deed, followed by seven monthly instalments of $10,000.

The first instalment falls one month after execution. Release follows cleared settlement funds. Security for the unpaid balance remains an open issue.

The example marks confidentiality as immediate and keeps the financial and other terms subject to the final document. Exclusivity is omitted.

Record the approving person and approval steps, including any estate or court approval requiring assessment. Keep the authority of each signatory separate from their name and capacity.

Payment stages remain your entered text. Reconcile their amounts and timing to the settlement total. The tool adds no forfeiture, acceleration or security term.

Review and Export the Heads

Review the authority and completion checklist before export. Blank required instructions disable copying and downloading. Invalid amounts or inconsistent selections replace the draft with an unavailable state.

A pending approval or open issue remains visible in the draft. The practitioner must assess its effect on the proposed settlement and any immediate commitment.

“Download editable document” saves the current editor text as an RTF document for further editing in Word or another compatible word processor.

The browser sends neither your instructions nor your draft to a server. Reloading clears changes. “Reset example” restores the fictional instructions and replaces the edited draft.

Saving a document does not sign or send it. Review the final wording and authority, then complete the required approval and execution steps separately.