The Letter of Intent for Services is commonly used in Pakistani business practice as a preliminary step before entering into a formal service agreement. It is typically employed when parties have reached a general understanding of their business relationship but need to document their intentions while finalizing details and conducting due diligence. This document type is particularly useful in complex service arrangements where detailed negotiation is required, or when parties need to demonstrate commitment to their stakeholders or secure preliminary approvals. While primarily non-binding, certain sections like confidentiality provisions are typically enforceable under Pakistani law. The document should be drafted in compliance with the Contract Act 1872 and other relevant Pakistani legislation, considering local business practices and legal requirements. The LOI helps establish clear expectations, timelines, and frameworks for negotiation while protecting both parties' interests during the pre-contractual phase.

1. Letter Header: Contains date, addressee details, and reference number if applicable

2. Introduction: Identifies the parties and their roles (service provider and recipient)

3. Purpose: Brief background and explanation of the intended services relationship

4. Scope of Services: High-level description of the services being contemplated

5. Commercial Terms: Outline of proposed key commercial terms including pricing structure and payment terms

6. Timeline: Proposed timeline for negotiation, due diligence, and execution of definitive agreement

7. Non-Binding Nature: Clear statement that the LOI is non-binding except for specific provisions

8. Confidentiality: Binding provisions regarding confidentiality of discussions and shared information

9. Exclusivity: If applicable, terms of exclusive negotiation period

10. Closing: Signature blocks and formal closing of the letter