A Letter of Intent to Purchase Goods is commonly used in Nigerian business practice as a preliminary step before entering into a formal purchase agreement. It is particularly useful when parties need to document their serious intention to proceed with a significant purchase transaction while still negotiating final terms. The document typically includes essential elements such as party identification, description of goods, proposed pricing, timeline, and any conditions precedent. While generally non-binding, it may contain certain binding provisions such as confidentiality and exclusivity clauses. This document type is especially relevant in complex commercial transactions where due diligence is required or where parties need to secure internal approvals before proceeding with a binding agreement. Under Nigerian law, while the LOI itself is typically non-binding, it must be drafted carefully to avoid unintended legal obligations and to clearly state which provisions are intended to be binding.

1. Date and Parties: Opening with current date and clear identification of both parties - the potential buyer and seller, including full legal names and addresses

2. Introduction and Purpose: Brief statement declaring this as a Letter of Intent and its purpose regarding the intended purchase of goods

3. Description of Goods: Clear identification and description of the goods intended to be purchased, including quantities and specifications

4. Proposed Purchase Price: Statement of the intended purchase price, payment terms, and any conditions related to pricing

5. Timeline: Proposed timeline for the transaction, including expected delivery dates and key milestones

6. Due Diligence: Statement regarding any inspection or verification requirements before final purchase

7. Non-Binding Nature: Clear statement that this is a non-binding LOI, except for any specifically binding provisions

8. Exclusivity Period: If applicable, the period during which the seller agrees not to negotiate with other parties

9. Confidentiality: Basic confidentiality provisions regarding the proposed transaction

10. Next Steps: Outline of the process toward final agreement, including timeline for formal purchase agreement

11. Signature Block: Space for signatures of authorized representatives from both parties