Letter Of Intent To Purchase Product Template for Hong Kong

A Letter of Intent to Purchase Product is commonly used in Hong Kong business transactions as a preliminary step before entering into a formal purchase agreement. It is particularly useful when dealing with significant or complex product purchases that require detailed negotiation or due diligence. The document typically outlines the proposed terms of purchase, including product specifications, pricing, delivery terms, and any conditions precedent. While generally non-binding (except for specific provisions like confidentiality), it demonstrates serious intent and commitment to the transaction. This document type is especially relevant in Hong Kong's dynamic trading environment, where it helps bridge cultural and business practices between international parties while operating within Hong Kong's common law framework.

1. Letterhead and Date: Company letterhead of the potential buyer and current date

2. Recipient Details: Full name and address of the seller/supplier

3. Subject Line: Clear indication that this is a Letter of Intent to Purchase [Product Name]

4. Introduction: Brief introduction identifying the parties and the purpose of the letter

5. Product Description: Detailed description of the product(s) intended to be purchased, including specifications, quantity, and quality requirements

6. Proposed Terms: Key commercial terms including proposed purchase price, payment terms, and delivery expectations

7. Timeline: Proposed timeline for negotiation, due diligence, and completion of the final purchase agreement

8. Non-Binding Statement: Clear statement that this is a non-binding letter of intent, except for specific provisions

9. Binding Provisions: Identification of which provisions are intended to be binding (typically confidentiality, exclusivity if applicable, and governing law)

10. Expiration: Statement of when this letter of intent expires if not acted upon

11. Closing and Signature: Formal closing, signature blocks for both parties