Document background
A Letter Of Intent For Offtake Agreement is typically used in the initial stages of significant commercial transactions in the UAE, where one party commits to purchasing specific quantities of future products or services from another party. This document serves as a crucial stepping stone toward a binding offtake agreement, outlining preliminary terms while allowing parties to proceed with due diligence and detailed negotiations. Used extensively in projects requiring long-term purchase commitments, it addresses key commercial points such as quantity, pricing principles, and delivery terms. Under UAE jurisdiction, while the majority of the LOI remains non-binding, certain provisions like confidentiality and exclusivity can be explicitly made binding. The document must comply with UAE federal laws, including the Civil Code and Commercial Transactions Law, particularly regarding contract formation and commercial obligations.
