This Preliminary Agreement template is designed for use under New Zealand law when parties wish to document their initial understanding and establish a framework for negotiations toward a final agreement. It's particularly useful in complex commercial transactions where parties need to establish early commitment while maintaining flexibility for detailed negotiations. The document includes essential binding elements (such as confidentiality and exclusivity) while keeping commercial terms subject to negotiation and final agreement. The template ensures compliance with New Zealand's legal framework, including the Contract and Commercial Law Act 2017 and Fair Trading Act 1986, making it suitable for various commercial contexts from mergers and acquisitions to joint ventures and commercial partnerships.
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1. Parties: Identifies and provides full legal details of all parties to the agreement
2. Background: Sets out the context and purpose of the preliminary agreement, including the parties' intentions to negotiate a final agreement
3. Definitions: Defines key terms used throughout the agreement
4. Scope: Outlines the subject matter and broad parameters of the proposed transaction or relationship
5. Key Commercial Terms: Lists the main commercial terms that have been agreed in principle
6. Negotiation Process: Describes how parties will conduct negotiations, including timeframes and key milestones
7. Confidentiality: Sets out obligations regarding confidential information exchanged during negotiations
8. Status of Agreement: Clarifies which provisions are legally binding and which are subject to negotiation
9. Costs: Addresses who bears the costs of negotiations and document preparation
10. Term and Termination: Specifies how long the preliminary agreement remains in effect and how it can be terminated
11. General Provisions: Standard boilerplate clauses including governing law, notices, and entire agreement
1. Exclusivity: Used when one party requires exclusive negotiating rights for a specified period
2. Due Diligence: Include when the agreement involves a future transaction requiring due diligence investigation
3. Break Fee: Add when parties want to specify compensation if one party withdraws from negotiations
4. Regulatory Approvals: Include when the proposed transaction may require regulatory or third-party approvals
5. Intellectual Property: Add when negotiations involve sharing or discussing intellectual property
6. Good Faith Obligations: Used to establish specific obligations for good faith negotiations
7. Publicity: Include when parties need to control public announcements about negotiations
1. Key Commercial Terms Schedule: Detailed listing of agreed commercial terms and parameters
2. Timeline Schedule: Detailed timeline for negotiations and key milestones
3. Due Diligence Requirements: List of required due diligence materials and information
4. Negotiation Protocol: Detailed procedures for conducting negotiations
5. Authorized Representatives: List of authorized representatives for each party involved in negotiations
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