Document background
A Partnership Term Sheet is a crucial preliminary document used when two or more parties are planning to enter into a partnership arrangement in Hong Kong. It serves as a roadmap for negotiations and subsequent documentation, typically prepared during the initial stages of partnership discussions. The document captures fundamental terms such as partnership structure, capital contributions, profit sharing, management rights, and key operational aspects, while reflecting requirements under Hong Kong's Partnership Ordinance and related legislation. While generally non-binding except for specific provisions like confidentiality, it forms the foundation for drafting the definitive partnership agreement. The term sheet is particularly valuable in complex partnerships, joint ventures, or when partners need to align their expectations before committing to detailed legal documentation.
