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The Business Letter of Intent is a crucial preliminary document used in New Zealand business transactions to establish the framework for future negotiations and agreements. It serves as a formal expression of interest between parties and typically precedes more detailed, binding agreements. While governed by New Zealand law, particularly the Contract and Commercial Law Act 2017 and Fair Trading Act 1986, it generally maintains a non-binding nature except for specific provisions like confidentiality and exclusivity. The document is commonly used in situations such as mergers and acquisitions, joint ventures, property developments, or significant business partnerships where parties need to outline their intentions and basic terms before proceeding with detailed due diligence and final agreements. It helps establish clear communication, demonstrate commitment, and provide a roadmap for the transaction while protecting both parties' interests during the negotiation phase.

1. Letter Header: Including sender's company details, date, and recipient's details

2. Subject Line: Clear identification of the proposed transaction or business relationship

3. Opening Statement: Formal introduction and purpose of the letter

4. Transaction Overview: Brief description of the proposed business arrangement or transaction

5. Key Terms: Outline of the fundamental terms and conditions being proposed

6. Timeline: Proposed schedule for negotiations and completion of the final agreement

7. Confidentiality Statement: Basic confidentiality obligations regarding the proposed transaction

8. Non-Binding Nature: Clear statement that the LOI is non-binding except for specific terms

9. Closing and Signatures: Formal closing, signature blocks for authorized representatives