A generic description for a number of documents that are signed in the early stages of a potential acquisition, usually before detailed due diligence (www.practicallaw.com/A34925) and drafting starts.
Preliminary agreements include the following:
Heads of terms (www.practicallaw.com/A36240) (also called letters of intent, memoranda of understanding, term sheets or protocols).
Exclusivity agreements (www.practicallaw.com/A36042) (also called lock-out agreements).
Break fees (www.practicallaw.com/A35940) (also called inducement fees or failure costs agreements).