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Licence to Occupy Heads of Terms

A Licence to Occupy Heads of Terms is a preliminary, non-binding document that outlines the key terms agreed upon between a licensor and licensee before drafting a formal licence agreement. It typically includes the parties' names, property description, licence period, fee, permitted use, maintenance responsibilities, and termination provisions.


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It serves to ensure both parties have a mutual understanding of the principal terms of the licence arrangement, facilitating a smoother drafting process for the formal agreement and reducing the likelihood of disputes.

Generally, Heads of Terms are not legally binding unless explicitly stated; they are intended to outline the agreed-upon terms prior to entering into a binding licence agreement.

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