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A term sheet is something used in a business agreement. The sheet will outline the terms and conditions of the transaction or deal as proposed by the interested party. A term sheet is usually a preliminary look at a transaction, so it is not typically legally binding.
This sheet usually uses bullets to identify important points of the business agreement. This bullet-point style is what makes a term sheet differ from a letter of interest. Another differing point is that a term sheet may be used as a proposal, instead of a solid final agreement.
When making a term sheet, you should include as much information as possible to make your proposal complete. This will ensure that there is no confusion as to the terms and conditions being offered for the business agreement. A good term sheet will lead to a quicker final transaction.
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