From piperalderman.com.au: In commercial real estate, pre-contract documents like Heads of Agreement are crucial for establishing binding commitments and should be tailored to reflect the intentions of the parties involved.

The enforceability of HOAs is governed by the principles outlined in Masters v Cameron, emphasising the importance of clarity in intent, offer, acceptance, and consideration.

Effective use of HOAs can streamline negotiations while avoiding unintended legal obligations, with specific provisions categorised as binding or non-binding based on their wording and purpose.