A Letter of Intent to Offer Services is commonly used in New Zealand business transactions when one party wishes to formally express their intention to provide services to another party, while establishing a framework for negotiating a definitive agreement. This document type is particularly valuable when the proposed services are complex, high-value, or require significant preparation and due diligence before a formal commitment. The letter typically includes key commercial terms, proposed service scope, timeline, and next steps, while usually maintaining a non-binding nature except for specific provisions. It must align with New Zealand legal requirements, including the Contract and Commercial Law Act 2017, Fair Trading Act 1986, and relevant industry regulations. This document serves as a crucial tool in commercial negotiations, providing structure and clarity while protecting both parties' interests during the pre-contractual phase.
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1. Date and Addressing: Formal business letter header including date and recipient's full details
2. Introduction: Opening paragraph identifying the parties and the purpose of the letter
3. Service Overview: Brief description of the services intended to be offered
4. Key Terms: Outline of main commercial terms including proposed pricing, timing, and scope
5. Duration and Timeline: Proposed timeframe for both the LOI and the intended service provision
6. Non-Binding Nature: Clear statement about which parts of the LOI are binding and non-binding
7. Next Steps: Process for moving forward towards a formal agreement
8. Confidentiality: Basic confidentiality obligations regarding discussions and shared information
9. Closing and Signature: Formal closing, signature blocks for both parties
1. Exclusivity Period: Used when parties want to negotiate exclusively for a specific period
2. Cost Allocation: Include when there are significant costs during the negotiation phase that need to be addressed
3. Due Diligence: When additional investigation or verification is needed before formal agreement
4. Regulatory Conditions: Include if the services are subject to specific regulatory approvals or conditions
5. Break Fee: Used in complex service arrangements where compensation for withdrawal needs to be addressed
6. Intellectual Property Protection: Include when discussions involve sharing of IP or proprietary information
1. Proposed Service Specification: Detailed outline of the services to be provided
2. Draft Commercial Terms: Preliminary pricing structure and commercial arrangements
3. Timeline and Milestones: Proposed schedule for negotiation and implementation of services
4. Required Documentation: List of documents and information needed to proceed with formal agreement
Authors
Relevant legal definitions
Clauses
Relevant Industries
Professional Services
Information Technology
Management Consulting
Legal Services
Financial Services
Healthcare
Engineering
Education and Training
Real Estate
Construction
Business Advisory
Marketing and Advertising
Environmental Services
Telecommunications
Relevant Teams
Legal
Commercial
Business Development
Operations
Procurement
Client Services
Contract Management
Project Management
Service Delivery
Account Management
Relevant Roles
Chief Executive Officer
Managing Director
Business Development Manager
Commercial Director
Legal Counsel
Contract Manager
Operations Manager
Project Manager
Service Delivery Manager
Account Executive
Procurement Manager
Business Owner
Partnership Director
General Manager
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