Term sheet
A structured, easy-to-understand framework to outline key terms for strategic partnerships before drafting final agreements.
Download and use All downloads and formatsStreamline your full contract workflow
Everything you need to get your agreement sent and signed today:
Templates -> Proposals -> Negotiations -> Approvals -> Esignature -> Recordkeeping
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Common Paper agreements help you get on the same page, faster.
Lightweight and flexible
Written to make negotiations simple and streamlined.
Easy to negotiate
Highly-structured format makes dealing with commonly negotiated terms faster and simpler for both parties.
Free and open source
You shouldn’t need to scour the internet for the right template. Our term sheet is available for anyone to use and modify.
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This document is free to use or modify under CC BY 4.0. The document is available in the following formats.
Streamline your full contract workflow
Everything you need to get your agreement sent and signed today:
Templates -> Proposals -> Negotiations -> Approvals -> Esignature -> Recordkeeping
Try it freeAbout this Common Paper agreement
What is a term sheet?
A term sheet is a non-binding agreement to agree. It outlines the key points of a potential deal between two parties before a formal contract is created. This particular term sheet is meant to be used to summarize the main elements of a strategic partnership, such as the scope of work, financial arrangements, and key responsibilities of each party (as opposed to a financing term sheet issued by VCs). It helps ensure that both sides are aligned on the major details before moving forward with more detailed negotiations and drafting of the final agreement.
When do startups use a term sheet?
Many startups are familiar with using a term sheet when raising capital or in M&A. Companies can also use a term sheet to outline complex or strategic partnerships. For example, startups might use a term sheet when entering into agreements with potential partners for tech integrations, marketing collaborations, distribution deals, or complex, multifaceted sales. Using a term sheet can streamline negotiations and ensure that everyone is aligned on the important points from the start.
What does non-binding mean?
Aside from the section on confidentiality, the Common Paper Term Sheet is non-binding. This means that the parties have no legal obligation to do anything specified in the term sheet. Put another way, either side can walk away at any time for any reason or no reason with no impact from having signed the term sheet.
The section on confidentiality is legally-binding. Because a term sheet is typically used in the early stages of negotiations, conversations between the parties may involve the exchange of confidential information.
How do I use this agreement?
To use this term sheet, first download a copy of it in your preferred format. Then, fill in details about the prospective deal. Finally, sign the term sheet with your counterparty via the signing process of your choice.
What license is this agreement released under?
Common Paper agreements are free to use and modify under CC BY 4.0.