A Letter of Intent to Supply Goods is commonly used in Indian business transactions as a preliminary step before executing a formal supply agreement. It is particularly useful when parties have reached a general understanding on key commercial terms but need time to negotiate details or conduct due diligence. The document typically includes basic terms such as product specifications, quantity, pricing structure, delivery schedules, and any conditional requirements. While primarily non-binding under Indian law (except for specifically designated clauses like confidentiality), it demonstrates serious business intent and provides a framework for negotiating the final agreement. This document type is especially relevant in scenarios involving significant supply arrangements, new business relationships, or complex commercial transactions where detailed terms need to be worked out over time.
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1. Date and Address Block: Opening with current date and recipient's complete business address
2. Subject Line: Clear identification of document purpose - 'Letter of Intent for Supply of [Specific Goods]'
3. Introduction: Identification of the parties and their roles (supplier/purchaser)
4. Intent Statement: Clear statement of intention to enter into a supply arrangement
5. Scope of Supply: Description of goods to be supplied, including specifications and quantities
6. Commercial Terms: Proposed pricing, payment terms, and delivery schedule
7. Duration: Intended timeframe for the supply arrangement
8. Next Steps: Process for moving forward to a formal agreement
9. Non-Binding Statement: Clear statement that this is a non-binding document except for any specifically binding terms
10. Closing and Signatures: Formal closing, signature blocks for both parties
1. Exclusivity: Include when parties wish to establish exclusive dealing arrangements during negotiation period
2. Confidentiality: Include when sensitive information will be shared during negotiations
3. Binding Terms: Include when certain terms need to be binding (like confidentiality, exclusivity, or governing law)
4. Due Diligence: Include when specific due diligence requirements need to be outlined
5. Conditions Precedent: Include when supply arrangement is subject to specific conditions being met
6. Term Sheet: Include when key commercial terms need to be summarized in a structured format
1. Product Specifications: Detailed technical specifications of the goods to be supplied
2. Preliminary Price List: Indicative pricing structure for the goods
3. Delivery Schedule: Proposed timeline and locations for delivery
4. Quality Standards: Required quality certifications and standards to be met
5. Term Sheet: Summary of key commercial terms in table format
Relevant legal definitions
Goods
Specifications
Delivery Schedule
Delivery Location
Effective Date
Binding Terms
Non-Binding Terms
Purchase Price
Payment Terms
Confidential Information
Business Day
Definitive Agreement
Due Diligence Period
Exclusivity Period
Force Majeure Event
Intellectual Property Rights
Quality Standards
Representatives
Territory
Working Days
Specifications
Delivery Schedule
Delivery Location
Effective Date
Binding Terms
Non-Binding Terms
Purchase Price
Payment Terms
Confidential Information
Business Day
Definitive Agreement
Due Diligence Period
Exclusivity Period
Force Majeure Event
Intellectual Property Rights
Quality Standards
Representatives
Territory
Working Days
Clauses
Parties Identification
Intent Declaration
Scope of Supply
Product Specifications
Quantity and Volume
Pricing Structure
Payment Terms
Delivery Terms
Quality Standards
Duration
Exclusivity
Confidentiality
Intellectual Property
Due Diligence
Conditions Precedent
Non-Binding Nature
Binding Provisions
Governing Law
Dispute Resolution
Notices
Costs and Expenses
Term and Termination
Good Faith Negotiations
Force Majeure
Assignment
Entire Understanding
Counterparts
Authority
Next Steps
Intent Declaration
Scope of Supply
Product Specifications
Quantity and Volume
Pricing Structure
Payment Terms
Delivery Terms
Quality Standards
Duration
Exclusivity
Confidentiality
Intellectual Property
Due Diligence
Conditions Precedent
Non-Binding Nature
Binding Provisions
Governing Law
Dispute Resolution
Notices
Costs and Expenses
Term and Termination
Good Faith Negotiations
Force Majeure
Assignment
Entire Understanding
Counterparts
Authority
Next Steps
Relevant Industries
Manufacturing
Retail
Automotive
Electronics
Pharmaceuticals
Fast-Moving Consumer Goods (FMCG)
Industrial Equipment
Textiles
Agriculture
Construction Materials
Chemical Industry
Food and Beverage
Relevant Teams
Procurement
Legal
Supply Chain
Commercial
Operations
Business Development
Vendor Management
Contract Administration
Finance
Compliance
Relevant Roles
Procurement Manager
Supply Chain Director
Commercial Director
Chief Procurement Officer
Sourcing Manager
Legal Counsel
Contract Manager
Business Development Manager
Operations Manager
Purchasing Officer
Vendor Relations Manager
Chief Operating Officer
General Manager - Supply Chain
Category Manager
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