Document background
A Letter of Intent to Buy Shares is commonly used in New Zealand as a preliminary step in share acquisition transactions. It serves as a formal expression of interest and outlines the basic terms of a proposed share purchase before parties commit to more detailed negotiations and due diligence. While most provisions are non-binding, certain elements like confidentiality and exclusivity periods may be legally enforceable under New Zealand law. The document is particularly useful in complex transactions where parties need to establish clear parameters for negotiation and confirm their serious intention to proceed. It typically precedes the more detailed share purchase agreement and helps secure initial commitment while allowing flexibility for detailed terms to be negotiated.
