Document background
The Memorandum of Interest (MOI) is a crucial preliminary document in New Zealand business transactions, serving as a formal mechanism to initiate potential business relationships or investment opportunities. It is commonly used when a party wishes to express serious interest in a business opportunity, property acquisition, or potential investment while maintaining flexibility before committing to a binding agreement. The document, while governed by New Zealand commercial law, is particularly useful in situations where parties need to establish initial terms and conditions, protect confidential information during preliminary discussions, and outline the scope of potential future negotiations. An MOI typically precedes more formal agreements such as Memoranda of Understanding or definitive agreements, and its non-binding nature (except for specific provisions like confidentiality) makes it an ideal tool for initiating complex commercial transactions while managing legal and business risks.
