1. Exclusivity: Period during which parties agree not to negotiate with others (used when buyer wants exclusive negotiation rights)

2. Due Diligence: Framework for information sharing and verification (used for complex or high-value transactions)

3. Cost Allocation: How costs of negotiation will be shared (used when significant costs are expected during negotiation)

1. Technical Specifications: Detailed coal quality parameters and testing methods

2. Delivery Schedule: Proposed timeline for deliveries

3. Price Calculation Formula: Detailed pricing mechanism and adjustments

4. Required Certifications: List of required quality and origin certificates

To draft a letter of intent for purchasing coal in the UK, begin by stating your interest in acquiring a specific quantity of coal from the seller's company. Provide details about the type of coal, desired quality standards, and proposed delivery timeline. Outline key terms such as the indicative price range you're willing to pay and any special requirements. Remember to mention that the letter is non-binding and subject to further negotiations and due diligence. Conclude by expressing your commitment to finalising a mutually beneficial agreement and requesting a response from the seller by a certain date.

A letter of intent (LOI) for coal purchase is generally not legally binding in the United Kingdom. It serves as a preliminary document outlining the key terms and conditions of a proposed transaction. The LOI expresses the parties' intentions to negotiate in good faith towards a definitive agreement. However, it does not create a legally enforceable contract until a formal contract is executed by both parties. The LOI may include provisions that are binding, such as confidentiality clauses or exclusivity periods, but the core commercial terms are typically non-binding. It is advisable for HR or operations professionals to consult with legal counsel to ensure a clear understanding of the specific provisions and their legal implications.

When drafting a Letter of Intent (LOI) for coal purchase, it's advisable to include clauses that outline the key terms and conditions of the proposed transaction. These may encompass the quantity and quality specifications of the coal, the delivery schedule, pricing mechanisms, payment terms, and any applicable taxes or duties. It's also prudent to address matters such as force majeure events, dispute resolution procedures, and confidentiality obligations. Additionally, the LOI should clearly state its non-binding nature, except for specific binding provisions like exclusivity or confidentiality clauses. While not legally binding, a well-crafted LOI can facilitate smoother negotiations and serve as a foundation for the definitive purchase agreement.