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If the parties intend the heads of agreement to be binding, it should contain the following.
In most cases it is a document which contains the essential terms of an agreement between two or more parties but is not intended to create a binding legal agreement.
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The basic terms are as follows: Non-Binding; This Document does not create a binding agreement between the Purchaser and the Seller and will not be enforceable. The general intention of a Heads of Agreement is that the document is not legally binding, but in some circumstances it can become legally binding. A generalised Heads of Agreement document for recording the agreement between three parties (to be signed by the three parties following their agreement) from which a formal legal contract will be built.
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