A Letter Of Intent To Purchase Equipment is commonly used in Australian business transactions when a company is planning to make a significant equipment purchase and needs to formalize their intentions before proceeding with a full purchase agreement. This document is particularly valuable when dealing with high-value equipment, complex specifications, or when multiple stakeholders are involved in the decision-making process. It helps establish the framework for negotiations while allowing both parties to maintain flexibility. The document typically precedes due diligence activities and the final purchase agreement, making it an essential tool in the equipment acquisition process. While generally non-binding, it demonstrates serious intent and can help secure internal approvals or external financing. Under Australian law, certain provisions such as confidentiality and exclusivity can be made binding, providing necessary protections during the negotiation phase.

1. Date and Letterhead: Business letter format with current date and company letterhead

2. Recipient Details: Full name, title, and address of the recipient

3. Subject Line: Clear indication that this is a Letter of Intent for Equipment Purchase

4. Opening Statement: Introduction identifying the parties and purpose of the letter

5. Equipment Description: Detailed description of the equipment intended to be purchased

6. Commercial Terms: Proposed purchase price, payment terms, and delivery expectations

7. Duration: Period for which the LOI remains valid

8. Next Steps: Process for moving forward to a definitive agreement

9. Non-Binding Statement: Clear statement that the LOI is non-binding except for specified clauses

10. Closing and Signature: Standard closing, signature blocks for both parties