Contractual Letter Of Intent Template for New Zealand

The Contractual Letter of Intent is a crucial document in New Zealand business transactions, serving as a stepping stone between initial negotiations and final agreements. It is typically used when parties have reached a preliminary understanding but need to formalize their intentions before proceeding with detailed due diligence or final contract negotiations. This document type is particularly valuable in complex transactions where parties need to demonstrate commitment while maintaining flexibility for final terms. Under New Zealand law, it combines both binding elements (such as confidentiality and exclusivity provisions) with non-binding elements (such as proposed transaction terms), providing a balanced approach to preliminary agreements. The document is especially relevant in situations involving significant commercial transactions, property developments, business acquisitions, or major service arrangements.

1. Letter Header: Formal business letter header including date, addresses of both parties, and reference line

2. Opening Statement: Formal salutation and introduction of the parties and purpose of the letter

3. Transaction Overview: Brief description of the proposed transaction or business relationship

4. Key Terms: Outline of the principal terms and conditions being proposed

5. Timeline: Proposed schedule for negotiation, due diligence, and completion

6. Binding Provisions: Clear statement of which provisions are intended to be legally binding

7. Non-Binding Provisions: Clear statement of which provisions are non-binding

8. Exclusivity: Terms regarding exclusive negotiation period, if applicable

9. Confidentiality: Terms regarding the confidential treatment of information

10. Closing: Formal closing, including signature blocks for both parties