The Letter Of Intent To Purchase Scrap Metal is a crucial preliminary document used in Malaysian commercial transactions within the metal recycling and manufacturing industries. It serves as a formal expression of interest from a potential buyer to a seller, outlining the basic terms and conditions for the proposed purchase of scrap metal. While primarily non-binding, this document plays a vital role in establishing the framework for subsequent negotiations and the final purchase agreement. It typically addresses key aspects such as material specifications, quantity, pricing mechanisms, and delivery terms, while ensuring compliance with Malaysian regulations including the Second-Hand Dealers Act 1946 and Environmental Quality Act 1974. This document is particularly important in the Malaysian context where scrap metal trading is subject to strict regulatory oversight and licensing requirements.

1. Date and Addressee Details: Complete contact information of both the sender and recipient, including company names, addresses, and registration numbers

2. Subject Line: Clear indication that this is a Letter of Intent for Scrap Metal Purchase

3. Opening Statement: Declaration of intent to purchase scrap metal and brief introduction of the parties involved

4. Description of Materials: Detailed specification of the type, quality, and quantity of scrap metal intended to be purchased

5. Proposed Commercial Terms: Outline of key commercial terms including proposed pricing mechanism, payment terms, and delivery arrangements

6. Duration of Intent: Validity period of the letter of intent and proposed timeline for formal agreement

7. Due Diligence: Statement regarding any inspection or verification requirements before finalizing the purchase

8. Non-Binding Nature: Clear statement that this is a non-binding letter of intent except for any specifically binding terms

9. Closing and Signatures: Formal closing, space for signatures, and company stamps if required