Term is a generic word that applies to the duration of the academic session while colleges have specific words like semester and trimester being used as the case may be. These words are used for the length or the time period for which a session lasts or has been so scheduled. If you would like formal legal advice on drafting a term sheet or any other corporate or commercial issue, please contact a member of the team.Term and semester are words commonly heard at educational institutions. Since the position may not always be clear, legal advice and clear legal drafting will eliminate most uncertainties. As a founder, you should be particularly wary of binding obligations that prejudice your ability to work with other investors for too long a period, and be even more wary of an investor who wishes to impose a penalty on you if for some reason the terms of the letter are breached. A good term sheet should save you time and money, but a poor one will have the opposite effect!īefore entering into a term sheet, you should decide whether the document will be legally binding, partially binding or not binding at all. Too little may mean that none of the key commercial issues have been addressed, and you may find out later that you never had a deal in the first place. Too much detail will cause delay and increase your costs as you may end up negotiating the deal twice. There is also a balance between too much detail and too little. If they do not correctly reflect what has been agreed, or fail to deal with key issues, term sheets can be risky documents to use since any ambiguity can cause uncertainty over the exact nature of the relationship between the parties.
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