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Terms Of Business Agreement for New Zealand

Terms Of Business Agreement Template for New Zealand

A comprehensive legal document governed by New Zealand law that establishes the fundamental terms and conditions under which a business provides its services to clients. This agreement incorporates key requirements from New Zealand legislation including the Contract and Commercial Law Act 2017, Fair Trading Act 1986, and Privacy Act 2020, while setting out clear parameters for service delivery, payment terms, liability limitations, and dispute resolution. It serves as the primary commercial agreement between service providers and their clients, ensuring both parties understand their rights, obligations, and the framework within which they will conduct business.

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What is a Terms Of Business Agreement?

The Terms of Business Agreement serves as a foundational document for businesses operating in New Zealand who provide services to clients on an ongoing basis. This document is essential for establishing clear commercial relationships and is typically used when a business needs to have a standard set of terms that can apply across multiple client engagements. It incorporates requirements from New Zealand legislation and common law principles, providing a comprehensive framework for service delivery, payment terms, liability, and dispute resolution. The agreement is particularly valuable for businesses that provide professional services, consulting, or ongoing business support, as it helps manage risk and sets clear expectations for both parties. It can be customized for specific industries while maintaining compliance with New Zealand legal requirements and business practices.

What sections should be included in a Terms Of Business Agreement?

1. Parties: Identifies and provides full legal details of all parties to the agreement

2. Background: Sets out the context and purpose of the agreement

3. Definitions: Defines key terms used throughout the agreement

4. Services: Detailed description of the services to be provided

5. Fees and Payment: Payment terms, rates, invoicing procedures, and payment methods

6. Term and Termination: Duration of the agreement and circumstances for termination

7. Obligations of Service Provider: Key responsibilities and commitments of the service provider

8. Client Obligations: Key responsibilities and commitments of the client

9. Confidentiality: Provisions for handling confidential information

10. Intellectual Property: Ownership and usage rights of intellectual property

11. Liability and Indemnity: Limitations of liability and indemnification provisions

12. Force Majeure: Provisions for unforeseen circumstances beyond parties' control

13. General Provisions: Standard legal provisions including governing law, notices, and assignment

What sections are optional to include in a Terms Of Business Agreement?

1. Data Protection: Detailed privacy and data handling terms - include when personal data processing is involved

2. Service Levels: Specific performance metrics and standards - include for technical or managed services

3. Insurance: Insurance requirements and coverages - include for high-risk services or when required by industry standards

4. Compliance: Specific regulatory compliance obligations - include when operating in regulated industries

5. Dispute Resolution: Detailed dispute resolution procedures - include for high-value or complex services

6. Change Control: Procedures for managing changes to services - include for long-term or complex service arrangements

7. Business Continuity: Disaster recovery and business continuity provisions - include for critical services

8. Subcontracting: Terms governing use of subcontractors - include when subcontracting is likely

What schedules should be included in a Terms Of Business Agreement?

1. Schedule 1 - Service Description: Detailed specifications of services, deliverables, and performance standards

2. Schedule 2 - Fee Schedule: Detailed pricing, rate cards, and payment terms

3. Schedule 3 - Service Levels: Specific performance metrics, measurement methods, and remedies

4. Schedule 4 - Key Personnel: Details of key staff and their roles

5. Appendix A - Data Processing Agreement: Detailed terms for handling personal data and ensuring privacy compliance

6. Appendix B - Security Requirements: Specific security protocols and requirements

Authors

Alex Denne

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

Jurisdiction

New Zealand

Publisher

Ƶ

Document Type

Service Agreement

Cost

Free to use
Relevant legal definitions













































Clauses



































Relevant Industries

Professional Services

Information Technology

Consulting

Financial Services

Legal Services

Marketing and Advertising

Business Services

Engineering

Healthcare

Education and Training

Real Estate

Construction

Manufacturing

Retail

Relevant Teams

Legal

Operations

Commercial

Sales

Business Development

Finance

Risk and Compliance

Client Services

Project Management

Account Management

Relevant Roles

CEO

Managing Director

Business Owner

General Counsel

Legal Counsel

Commercial Manager

Operations Manager

Contract Manager

Business Development Manager

Sales Director

Finance Manager

Risk Manager

Compliance Officer

Project Manager

Account Manager

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

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