Document background
The Joint Venture MOU is a crucial preliminary document used in New Zealand business transactions when parties are exploring a significant business collaboration but are not yet ready to enter into a binding joint venture agreement. This document typically comes into play during the early stages of negotiations, after initial discussions have shown promise but before detailed due diligence and final terms are agreed upon. The MOU sets out the fundamental understanding between the parties, including proposed structure, contributions, and objectives, while maintaining flexibility for future negotiations. While predominantly non-binding, certain provisions such as confidentiality and exclusivity are typically made binding. The document must comply with New Zealand law and consider relevant regulatory requirements, particularly the Commerce Act 1986 for competition aspects and the Overseas Investment Act 2005 if foreign investment is involved.
