Clients often ask us if the heads of Terms or declarations of intent they have already agreed with another party are binding. Ultimately, it depends on what was agreed, what the parties` intentions were, and whether the terms are safe enough to be legally enforceable. We can also help you prepare your contracts so that you can do what you need to do to close your deal, so you can continue with the deal. The parties may decide whether they intend to be immediately bound or to be bound at the time of signing the proposed formal agreement. Thus, the risk of litigation is eliminated or reduced. The term “Heads of Agreement” is most often used in Australia, New Zealand and the United Kingdom. .