Heads of Agreement

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Heads of Agreement

An informal agreement between two parties seeking to form a partnership outlining the rights and responsibilities each would have in the partnership. Heads of agreement are intentionally vague and are usually the first step toward a full contract. Negotiations continue after the MOU is signed. Heads of agreement are similar to a memorandum of understanding for partnerships, but heads of agreement are not enforceable in a court of law, unlike an MOU. See also: Handshake Agreement.