heads of agreement

Definition of heads of agreement

Etymology

heads + of + agreement

Noun

heads of agreement (plural heads of agreement)

1. (law, former, UK) A document stating the intent of the parties to enter into a binding agreement as outlined in the document.
   
   * 1995, Wolfgang Peter, Arbitration and Renegotiation of International Investment Agreements, page 116
   Finally, on July 10, 1984, Heads of Agreement were signed. Three extra drafting rounds were necessary in order to formally sign the Renegotiated Agreement.

Further reading

A heads of agreement is a non-binding document outlining the main issues relevant to a tentative (partnership or other) agreement. A heads of agreement document will only be enforceable when it is adopted into a parent contract and subsequently agreed upon. Until that point, a heads of agreement will not be legally binding (See Fletcher Challenge Energy v Electricity Corporation of New Zealand [2002]2 NZLR 433).