Document background
The Memorandum of Intent (MOI) is a crucial preliminary document in New Zealand business and legal practice, used when parties wish to formally document their intentions before entering into a definitive agreement. It serves as a roadmap for future negotiations while typically maintaining a non-binding nature, except for specific provisions such as confidentiality and exclusivity. The document is particularly valuable in complex transactions, international business dealings, or situations requiring careful negotiation and due diligence. Under New Zealand law, while an MOI is generally non-binding, it must be carefully drafted to avoid unintended legal obligations and to ensure compliance with relevant legislation such as the Contract and Commercial Law Act 2017 and the Fair Trading Act 1986. The document typically precedes more formal agreements and helps establish clear expectations, timelines, and frameworks for further discussion and negotiation.
