A Letter Of Intent To Purchase Product is commonly used in German business transactions as a preliminary step before entering into a final purchase agreement. It is particularly useful when dealing with significant product purchases that require detailed negotiation, due diligence, or complex delivery arrangements. The document typically outlines the proposed terms of the purchase, including product specifications, pricing, quantity, and delivery timeline, while maintaining a non-binding nature except for specific provisions such as confidentiality or exclusivity. Under German law, while such letters of intent are generally non-binding, they can create certain legal obligations under the principle of culpa in contrahendo (pre-contractual liability), making it important to carefully draft the document's terms. This document is especially relevant in cross-border transactions where German law applies, or when dealing with high-value product purchases that require a structured negotiation process.

1. Date and Addresses: Full names and addresses of both parties

2. Subject Line: Clear indication that this is a Letter of Intent for product purchase

3. Opening Statement: Formal introduction and identification of the parties

4. Product Description: Detailed description of the product(s) intended to be purchased

5. Commercial Terms: Proposed price, quantity, and basic payment terms

6. Timeline: Proposed timeline for negotiation and completion of the final purchase

7. Due Diligence: Process and timeline for any necessary product inspection or verification

8. Non-Binding Nature: Clear statement that this is non-binding except for specified provisions

9. Closing and Signatures: Formal closing, date, and signature blocks for both parties