The Proposal of Intent is a crucial preliminary document in Australian business practice, used when parties wish to formally express interest in a potential business arrangement while maintaining flexibility before entering into binding commitments. It typically precedes more formal agreements and is particularly valuable in complex transactions where detailed due diligence and negotiations are anticipated. The document should comply with Australian contract law principles and relevant state/territory regulations, particularly regarding pre-contractual negotiations and representations. While generally non-binding, certain provisions (such as confidentiality and exclusivity) may be specifically designated as binding. The Proposal of Intent serves to document preliminary understandings, outline key commercial terms, and establish a framework for further negotiations, while protecting both parties' interests during the exploratory phase of their potential relationship.

1. Date and Address Block: Formal business letter header including date and recipient's details

2. Subject Line: Clear identification of the proposal topic and any reference numbers

3. Introduction: Identifies the parties and their roles in the proposed arrangement

4. Background: Brief context of the discussions and relationship between parties to date

5. Purpose: Clear statement of the proposal's objective and scope

6. Key Terms: Outline of the main proposed terms and conditions being considered

7. Proposed Timeline: Expected schedule for negotiations and implementation

8. Non-Binding Nature: Clear statement that this is not a binding agreement (except for any specific binding terms)

9. Next Steps: Proposed action items and path forward

10. Closing: Formal closing, signature block and contact details