what are the common pitfalls to avoid when drafting a term sheet 
common pitfalls include being too vague or overly detailed failing to clearly distinguish between binding and nonbinding terms not setting realistic time frames and neglecting to outline key financial terms and conditions the bottom linea term sheet is a document that evidences serious intent between two parties that often signals the beginning of a transaction it s the first step for the two parties working on structuring a deal though term sheets are usually not binding they may require a good faith deposit in escrow indicating serious effort toward a future deal 