The Letter of Interest (LOI) is a crucial preliminary document in New Zealand's business landscape, used to formally express interest in business opportunities, potential partnerships, or commercial transactions. It serves as an initial step before more detailed negotiations and formal agreements. While typically non-binding, the LOI must still adhere to New Zealand legal requirements and commercial practices, particularly the Contract and Commercial Law Act 2017 and Fair Trading Act 1986. The document is commonly used when organizations want to formally indicate their interest in opportunities such as mergers and acquisitions, property developments, joint ventures, or major project tenders, while maintaining legal and commercial flexibility during preliminary discussions.
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1. Letter Header: Includes date, recipient's full name, title, company name, and address
2. Subject Line: Clear indication of the purpose of the letter and any relevant reference numbers
3. Introduction: Formal opening that identifies the sender and establishes the purpose of the letter
4. Expression of Interest: Clear statement of interest in the business opportunity, project, or transaction
5. Project Understanding: Brief description of the project or opportunity as understood by the interested party
6. Key Terms: Outline of principal terms or conditions under which the interest is expressed
7. Proposed Next Steps: Clear indication of desired next steps in the process
8. Confidentiality Statement: Brief statement regarding the confidential nature of the communication
9. Contact Information: Details of key contact person for further communications
10. Closing: Professional closing with signature block including name and title of authorized signatory
1. Preliminary Terms: Used when specific initial terms need to be outlined, such as proposed pricing or timelines
2. Company Profile: Include when the recipient may not be familiar with your organization
3. Financial Capacity: Added when demonstrating financial capability is important for the proposed opportunity
4. Due Diligence Requirements: Include when specific information or access will be needed for evaluation
5. Non-Binding Statement: Explicit statement that the LOI is non-binding, if required
6. Exclusivity Period: Used when requesting exclusive negotiation rights for a specific period
7. Expiration Date: Include when the expression of interest needs to be time-bound
1. Company Information: Detailed information about the expressing company, including corporate structure and relevant experience
2. Initial Project Timeline: Preliminary schedule of key milestones and proposed deadlines
3. Supporting Documents: References, certifications, or other relevant documentation
4. Preliminary Terms Sheet: Basic outline of proposed commercial terms, if applicable
Authors
Relevant legal definitions
Clauses
Relevant Industries
Real Estate
Construction
Information Technology
Manufacturing
Professional Services
Healthcare
Education
Financial Services
Infrastructure
Energy
Mining
Agriculture
Telecommunications
Research and Development
Government Services
Relevant Teams
Legal
Business Development
Corporate Development
Commercial
Strategy
Operations
Mergers and Acquisitions
Investment
Procurement
Project Management
Executive Leadership
Relevant Roles
Chief Executive Officer
Managing Director
Business Development Manager
Commercial Director
Legal Counsel
Corporate Development Manager
Project Manager
Investment Manager
Property Development Manager
Procurement Manager
Strategy Director
Operations Director
Head of Mergers and Acquisitions
Business Unit Head
Partnership Manager
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