Document background
The Contractor Letter of Intent is a crucial preliminary document used in Australian business environments when engaging contractors for various projects or services. It serves as a stepping stone between initial discussions and the execution of a formal contractor agreement. This document is particularly valuable when parties need to demonstrate serious intent to proceed with a contractor arrangement while finalizing detailed terms. The Letter of Intent typically includes proposed commercial terms, scope of work, timeline, and specifically identified binding provisions (such as confidentiality and exclusivity). While maintaining its primarily non-binding nature, it must align with Australian legislative requirements, including the Independent Contractors Act 2006, relevant state legislation, and common law principles. This document is commonly used when time is of essence, when preliminary work needs to commence before finalizing a formal agreement, or when parties need to secure internal approvals based on preliminary terms.
