Term Sheet assures that parties involved in the business transaction agree on the significant and fundamental aspects of the deal and also minimizes any misunderstanding that may arise between the parties. Term sheet has all he important clauses in writing which avoids unnecessary disputes which may arise in the future between the parties. The major elements of term sheet are details of the parties, valuation of the company, voting rights, price per share, exit options, liquidation preference, anti dilution provision, etc.