Deal Memo
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| In one sentence | A short written summary of the main points of a deal, usually meant to be binding even before a longer, full contract is signed. |
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| Category | Film and Television |
| Related | Long-Form Contract, Attached |
Imagine you and a friend shake hands and jot down on a napkin exactly what you both agreed to trade, planning to write it up more formally later. That napkin note already counts as a real deal between you, even though it is short and informal.
A deal memo works the same way in the movie business. It is a short written summary, sometimes called a term sheet or a letter of intent, that spells out the main points everyone agreed to, like who is involved and how much money changes hands. Even though it is much shorter than a full contract, a deal memo is usually meant to be binding, meaning everyone is actually held to it, while a longer, more detailed Long-Form Contract gets written up afterward.
Fun facts
- Movies are sometimes financed and even filmed based only on a signed deal memo, with the full long-form contract still being negotiated behind the scenes.
- Because a deal memo is short, it can leave out details that later cause disagreements, which is exactly what the long-form contract is meant to nail down.
- A deal memo can be as short as a single page, even for deals involving millions of dollars.