Document background
A Business Transfer Letter is a crucial document used when initiating or formalizing the transfer of business ownership or assets between parties in New Zealand. This document serves as the first formal written communication outlining the proposed transfer and its key terms, operating under New Zealand's commercial law framework, including the Contract and Commercial Law Act 2017, Fair Trading Act 1986, and other relevant legislation. The letter typically precedes more detailed agreements and is used to establish the fundamental terms of the transfer, including asset details, financial considerations, employee matters, and transition arrangements. It's particularly important in ensuring all parties have a clear understanding of the proposed transaction and their obligations under New Zealand law before proceeding with more detailed documentation.
