Question

Founder John Adams signed a Term Sheet with Hamilton Venture Partners. Which of the following statements is true?

		Term sheets are non-binding “agreements to agree” and no provisions are enforceable. 
		The term sheet is a binding agreement and Adams must complete a transaction with Hamilton.
		The No Shop Provision in the Term Sheet is non-binding, so Adams is free to seek a better deal from other potential investors.
		The price per share agreed to in the term sheet is binding on both parties.
		The No Shop Provision is the only binding provision in the agreement (other than the agreement to pay legal fees).

Answer 1

The term sheet are non binding agreements but no Shop provision is a binding clause as it doesn't allow you to look for new buyers. So , the answer would be

{E}The no Shop provision is only binding provision in the agreement.