Option Agreement for New Zealand

Option Agreement Template for New Zealand

A New Zealand Option Agreement is a legally binding contract that grants one party (the option holder) the right, but not the obligation, to enter into a future transaction with another party (the option grantor) under specified terms and conditions. Governed by New Zealand law, particularly the Contract and Commercial Law Act 2017, this agreement sets out the option period, consideration, exercise mechanics, and completion requirements. The document includes essential provisions for option exercise, pricing mechanisms, warranties, and completion procedures, all structured to comply with New Zealand legal requirements and commercial practices.

Your data doesn't train Genie's AI

You keep IP ownership of your information

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Download a Standard Template

4.6 / 5
4.8 / 5
Access for free
OR

Alternatively: Run an advanced review of an existing
Option Agreement

Let Genie AI's market-leading legal AI identify missing terms, unusual language, compliance issues and more - in just seconds.
Upload your Doc

What is a Option Agreement?

Option Agreements are widely used in New Zealand business transactions to provide flexibility and risk management in commercial dealings. These agreements grant one party the right to enter into a future transaction, such as purchasing property, shares, or assets, under pre-agreed terms. The Option Agreement must comply with New Zealand law, particularly the Contract and Commercial Law Act 2017, Property Law Act 2007, and when applicable, the Financial Markets Conduct Act 2013. It typically includes detailed provisions on option exercise mechanisms, consideration, timing, and completion requirements. This document type is particularly valuable in scenarios where parties need time to conduct due diligence, arrange financing, or await regulatory approvals before committing to a full transaction.

What sections should be included in a Option Agreement?

1. Parties: Identifies and defines all parties to the agreement, including their legal status and contact details

2. Background: Sets out the context and purpose of the option agreement, including relevant background information about the parties and the subject matter

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes interpretation rules

4. Grant of Option: Clearly states the option being granted and its basic terms

5. Option Period: Specifies the duration of the option and any conditions affecting its term

6. Option Fee: Details the consideration paid for the option and payment terms

7. Exercise of Option: Describes the process and requirements for exercising the option

8. Completion: Sets out the process and obligations upon exercise of the option

9. Warranties and Representations: Contains warranties given by each party regarding their capacity and authority

10. Confidentiality: Establishes obligations regarding confidential information

11. Default and Termination: Specifies events of default and termination rights

12. General Provisions: Contains standard boilerplate clauses including notices, governing law, and dispute resolution

What sections are optional to include in a Option Agreement?

1. Due Diligence: Include when the option holder has the right to conduct investigations before exercise

2. Security: Include when there is any form of security provided for the option

3. Third Party Consents: Include when exercise of the option requires external approvals

4. Pre-emptive Rights: Include for share options where existing shareholders have pre-emptive rights

5. Tax Provisions: Include when specific tax treatments or obligations need to be addressed

6. Regulatory Compliance: Include when specific regulatory requirements apply to the option or its exercise

7. Assignment: Include when transfer rights need to be specifically addressed

What schedules should be included in a Option Agreement?

1. Schedule 1 - Description of Option Subject Matter: Detailed description of the asset, shares, or rights subject to the option

2. Schedule 2 - Option Exercise Notice: Pro forma notice for exercising the option

3. Schedule 3 - Option Fee Calculation: Formula or mechanism for calculating the option fee if not fixed

4. Schedule 4 - Exercise Price Calculation: Formula or mechanism for calculating the exercise price if not fixed

5. Schedule 5 - Completion Requirements: Detailed list of requirements and deliverables upon exercise

6. Appendix A - Due Diligence Requirements: If applicable, detailed requirements for due diligence process

7. Appendix B - Required Consents: If applicable, list of required third-party or regulatory consents

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

New Zealand

Publisher

Genie AI

Document Type

Agreement Contract

Cost

Free to use
Relevant Industries

Real Estate

Financial Services

Technology

Manufacturing

Mining and Resources

Agriculture

Retail

Professional Services

Investment Banking

Private Equity

Venture Capital

Energy

Infrastructure

Relevant Teams

Legal

Finance

Commercial

Business Development

Corporate Development

Risk and Compliance

Operations

Investment

Strategy

Property

Mergers and Acquisitions

Asset Management

Relevant Roles

Legal Counsel

Commercial Director

Business Development Manager

Chief Financial Officer

Investment Manager

Property Manager

Corporate Lawyer

Transactions Manager

Compliance Officer

Risk Manager

Company Secretary

Asset Manager

Chief Executive Officer

Commercial Manager

Director of Operations

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

Find the exact document you need

Videography Contract

A New Zealand-compliant contract governing professional videography services, outlining service terms, deliverables, and legal obligations between videographers and clients.

find out more

Warrant Agreement

A New Zealand-governed agreement establishing terms for the purchase of securities at a predetermined price and time period, compliant with local financial markets legislation.

find out more

Triple Net Lease Agreement

A New Zealand-compliant commercial lease agreement where tenant pays all property operating expenses including taxes, insurance, and maintenance in addition to base rent.

find out more

Surety Agreement

A New Zealand law-governed agreement where a guarantor assumes responsibility for another party's obligations or debts to a creditor.

find out more

Subscription Agreement

New Zealand-governed agreement establishing terms and conditions for subscription-based services, detailing service delivery, payment terms, and mutual obligations.

find out more

Sub Tenancy Agreement

A legal agreement under New Zealand law that enables a tenant to rent out all or part of their rental property to a subtenant, establishing rights and obligations for all parties involved.

find out more

Short Term Contract

New Zealand-compliant contract template for fixed-term employment or temporary service arrangements, incorporating all essential elements required under NZ employment law.

find out more

Scheduling Agreement

A New Zealand-governed agreement that establishes terms and conditions for scheduled services or deliveries between parties, including timing, performance requirements, and operational procedures.

find out more

Production Contract

A New Zealand-law governed agreement setting out terms and conditions for production of goods or content, including specifications, quality standards, and delivery requirements.

find out more

Probationary Contract

A New Zealand-compliant employment agreement establishing a probationary period for new employees, outlining terms, conditions, and evaluation criteria.

find out more

Private Road Maintenance Agreement

A New Zealand-compliant agreement establishing maintenance responsibilities and cost-sharing arrangements for shared private roads.

find out more

Purchase Proposal

A formal New Zealand business document outlining proposed terms and conditions for purchasing assets, businesses, or properties under NZ law.

find out more

One Year Contract

A one-year contract template compliant with New Zealand law, designed for fixed-term business relationships.

find out more

Novation Agreement

A New Zealand law-governed agreement that transfers contractual rights and obligations from one party to another with the consent of all involved parties.

find out more

Material Contract

A New Zealand law-governed agreement setting out terms and conditions for the supply of materials, including specifications, quality standards, and commercial terms.

find out more

Installment Contract

A New Zealand-compliant agreement for the purchase of goods or services through scheduled installment payments.

find out more

Labor Contract

A New Zealand-compliant employment agreement establishing terms and conditions between employer and employee under NZ employment law.

find out more

Lease Deed

A New Zealand lease deed establishing formal property rental terms between lessor and lessee under NZ property law.

find out more

Informal Contract

A simplified contract template compliant with New Zealand law, designed for basic commercial and service agreements.

find out more

Individual Contract

New Zealand-compliant individual employment agreement establishing terms and conditions between employer and employee.

find out more

Franchise Agreement

A New Zealand-governed agreement establishing the rights and obligations between a franchisor and franchisee for operating a franchised business.

find out more

Form For Independent Contractor

A New Zealand-compliant agreement establishing terms and conditions for engaging independent contractors, defining services, payments, and maintaining contractor status.

find out more

Encroachment Agreement

A New Zealand law-governed agreement that establishes rights and obligations between property owners regarding structural or physical encroachment on neighboring property.

find out more

Executive Contract

A New Zealand-compliant employment agreement for executive-level appointments, establishing comprehensive terms and conditions for senior management roles.

find out more

Deed Of Lease

A formal legal document under New Zealand law establishing the terms and conditions between a landlord and tenant for the lease of property, executed as a deed.

find out more

Contingency Contract

A New Zealand-governed agreement that establishes conditions for payment or performance based on specific triggering events or outcomes.

find out more

Contractor Form

A New Zealand-compliant agreement establishing terms and conditions for engaging independent contractors, including service scope, payment terms, and legal obligations.

find out more

Consent Agreement

A New Zealand-compliant agreement establishing explicit consent for data handling and specific rights between parties under NZ privacy laws.

find out more

Common Agreement

A standardized legal agreement template for business relationships under New Zealand law, suitable for various commercial transactions.

find out more

Business To Business Contract

A New Zealand-governed business-to-business contract template for establishing commercial relationships between organizations.

find out more

Barter Agreement

A New Zealand-compliant agreement facilitating the direct exchange of goods and/or services between parties without monetary payment.

find out more

Agreement To Lease

A New Zealand-compliant preliminary agreement that establishes the terms and conditions for a future lease between landlord and tenant.

find out more

Master Contract

A New Zealand-law governed framework agreement establishing core terms for ongoing business relationships and future transactions.

find out more

Land Lease Agreement Form

A New Zealand-compliant legal agreement establishing terms and conditions for land lease arrangements between landlord and tenant.

find out more

Basic Ordering Agreement

A New Zealand-governed framework agreement establishing terms and conditions for future orders between parties, streamlining recurring procurement processes.

find out more

Franchise Agreement Draft

A New Zealand-governed agreement establishing the rights and obligations between a franchisor and franchisee for operating a franchised business.

find out more

Engagement Contract

A New Zealand-governed contract establishing an independent contractor relationship between a principal and contractor, defining services, terms, and obligations.

find out more

Contract Agreement Form

A standard contract agreement template compliant with New Zealand law, establishing terms and conditions for business relationships.

find out more

Cross Purchase Buy Sell Agreement

A New Zealand-governed agreement establishing terms and procedures for business owners to purchase each other's interests upon specified trigger events.

find out more

Written Agreement

A formal Written Agreement under New Zealand law that establishes legal rights and obligations between parties, ensuring clear terms and enforceable commitments.

find out more
See more related templates

Genie’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; Genie’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

We are ISO27001 certified, so your data is secure

Organizational security:

You retain IP ownership of your documents and their information

You have full control over your data and who gets to see it

2 Docs LeftAccess Now