A Letter Of Intent To Supply Goods is commonly used in Nigerian commercial transactions when parties wish to formalize their preliminary understanding before entering into a detailed supply agreement. This document type is particularly useful in situations where parties need to demonstrate serious intent to proceed with a supply arrangement, secure internal approvals, or commence due diligence while maintaining flexibility before final commitment. The document typically outlines key commercial terms, proposed timelines, and next steps, while clearly stating its generally non-binding nature. Under Nigerian law, while such letters of intent are primarily used to establish framework for negotiations, certain provisions (such as confidentiality or exclusivity) can be made explicitly binding. The document serves as a crucial stepping stone toward a formal supply agreement, particularly in complex or high-value transactions where detailed negotiations are anticipated.

1. Date and Parties: Full identification of both parties including registered addresses and company registration numbers where applicable

2. Introduction: Brief statement establishing the context and purpose of the letter

3. Goods Description: Clear identification and description of the goods to be supplied

4. Proposed Commercial Terms: Outline of key commercial terms including estimated quantities, pricing structure, and delivery timeframes

5. Duration: Proposed timeline for the supply arrangement and intended start date

6. Next Steps: Clear outline of the process toward forming the final supply agreement

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

8. Signature Block: Space for authorized representatives to sign and date the letter