A Letter Of Intent For Selling Product is commonly used in South African business transactions as a preliminary step before entering into a definitive sales agreement. It's particularly useful when parties need to document their serious intention to proceed with a product sale while still negotiating final terms or conducting due diligence. The document typically outlines key commercial terms including product specifications, pricing, quantity, and delivery terms, while maintaining flexibility for future negotiations. While generally non-binding, certain provisions such as confidentiality and exclusivity can be made binding. This document type is governed by South African law, including the Consumer Protection Act, common law principles, and where applicable, international trade regulations. It serves as a crucial tool in complex product sales transactions where parties need to demonstrate commitment while maintaining negotiating flexibility.

1. Sender and Recipient Details: Full legal names and addresses of both parties

2. Date: Date of the letter

3. Subject Line: Clear identification as a Letter of Intent for product sale

4. Introduction: Brief statement of intent to enter into a product sale arrangement

5. Product Description: Detailed description of the products to be sold

6. Commercial Terms: Proposed pricing, quantity, and payment terms

7. Timeline: Proposed timeline for negotiation and execution of definitive agreements

8. Due Diligence: Overview of any due diligence requirements or process

9. Exclusivity: Statement regarding any exclusivity period

10. Non-Binding Nature: Clear statement about which provisions are non-binding

11. Confidentiality: Terms regarding confidential treatment of discussions and information

12. Governing Law: Specification of South African law as governing law

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