Under Dutch law, a contract is concluded by offer and acceptance: see acceptance of an offer under Dutch law. In most cases, it is not necessary to contain a contract in writing or in a single document and the parties do not have to agree on all the details of the contract. Therefore, the timing of negotiations on which a treaty is concluded may not always be obvious. What legal obligations do I have while negotiating a contract under Dutch law? What is the legal status of pre-contractual documents? Am I bound by a statement of intent? Can I impose a “gentleman`s agreement”? However, these documents may be legally binding if the treaty document contains conditions or language that explicitly refer to binding intent. In the case of a commercial real estate transaction in the UK, a heads of agreement is often referred to as Heads of Terms (HOTS). The main purpose of the terms is to identify and highlight the requirements of both the seller and the buyer of the property. There are a number of advantages of using term heads. For example, through implementation, both parties will fully understand what they are doing and can reduce or eliminate misunderstandings on both sides.  Heads of Terms normally contain the following information: A number of heads of agreement, heads of terms or declarations of intent are a non-binding document that defines the main issues relevant to a provisional sale, partnership or other agreement.  A heads of agreement document is only applicable if it is included in a mother`s contract and is then agreed, unless otherwise stated. .