Document background
The Due Diligence Engagement Letter is a critical document used in New Zealand business transactions to formally establish the professional relationship between a service provider and client for conducting due diligence investigations. This document is typically required before commencing any significant corporate transaction, merger, acquisition, or major investment where detailed investigation of a target company or asset is necessary. It encompasses essential elements required under New Zealand law, including scope definition, service standards, confidentiality obligations, and liability provisions. The letter must comply with New Zealand's regulatory framework, including the Contract and Commercial Law Act 2017, Financial Markets Conduct Act 2013, and relevant professional standards. It serves as both a legal protection mechanism and a project management tool, clearly outlining expectations, deliverables, and responsibilities of all parties involved.
