An Aircraft Purchase Letter of Intent is a crucial preliminary document used in aviation transactions to establish the framework for negotiations between potential buyers and sellers of aircraft. This document, governed by New Zealand law, typically precedes the more detailed Aircraft Purchase Agreement and outlines key commercial terms including aircraft specifications, proposed purchase price, payment structure, and timeline. While primarily non-binding, it often contains certain binding provisions such as confidentiality and exclusivity clauses. The document is particularly important in New Zealand's aviation sector as it helps ensure compliance with local aviation regulations and commercial law while providing a clear roadmap for the transaction. It's commonly used in both commercial and private aircraft transactions and serves as a formal expression of serious interest in proceeding with the purchase.
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1. Letterhead and Date: Sender's company details and date of the letter
2. Recipient Address: Full details of the recipient including name, title, company, and address
3. Subject Line: Clear identification of document as Letter of Intent for Aircraft Purchase
4. Opening Paragraph: Introduction of parties and purpose of the letter
5. Aircraft Description: Detailed description of the aircraft including make, model, serial number, and registration
6. Purchase Price: Proposed purchase price and any price adjustment mechanisms
7. Payment Terms: Overview of deposit requirements and payment structure
8. Due Diligence: Outline of inspection and documentation review process
9. Timeline: Proposed timeline for due diligence, negotiations, and closing
10. Exclusivity: Period during which seller agrees not to negotiate with other parties
11. Conditions: Key conditions that must be met before proceeding to final agreement
12. Binding Nature: Clear statement of which provisions are binding and non-binding
13. Closing: Signature blocks and formal closing of letter
1. Deposit Terms: Detailed terms for deposit payment and escrow arrangements, used when immediate deposit is contemplated
2. Confidentiality: Detailed confidentiality provisions, used when not covered by separate NDA
3. Broker Representation: Declaration of any broker involvement and fee arrangements, used when brokers are involved
4. Financing Contingency: Conditions related to buyer's financing, used when purchase depends on securing financing
5. Governing Law: Specification of governing law and jurisdiction, used in cross-border transactions
6. Cost Allocation: Distribution of transaction costs, used when parties want to clarify cost responsibilities early
7. Asset Condition Warranty: Basic warranties about aircraft condition, used when seller makes specific representations
1. Aircraft Specifications: Detailed technical specifications of the aircraft
2. Due Diligence Checklist: List of documents and records to be reviewed
3. Key Commercial Terms Summary: Summary of main commercial terms for quick reference
4. Timeline Schedule: Detailed timeline with key milestones and deadlines
5. Deposit Structure: Breakdown of deposit payments and timing
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