The Letter of Intent for Transportation Services is a crucial preliminary document used in South African business practice when parties are planning to enter into a significant transportation services arrangement. This document is typically employed when a company requires regular transportation services and wants to formalize its intention to engage with a specific service provider before finalizing a comprehensive agreement. The LOI outlines key commercial terms, operational requirements, and compliance with South African transportation regulations while maintaining flexibility for detailed negotiations. It's particularly valuable in complex transportation arrangements where due diligence and detailed contract negotiations are necessary. The document must align with South African legal requirements, including the National Land Transport Act, Consumer Protection Act, and other relevant transportation regulations. While primarily non-binding, certain provisions like confidentiality and exclusivity are typically enforced.

1. Parties: Identification of the parties entering into the LOI, including full legal names, registration numbers, and registered addresses

2. Background: Brief context of the proposed transportation services arrangement and the purpose of the LOI

3. Definitions: Key terms used throughout the LOI that require specific definition for clarity

4. Purpose and Scope: Clear statement of the intended transportation services and the geographical scope of operations

5. Proposed Commercial Terms: Outline of the key commercial terms including proposed pricing structure, payment terms, and service levels

6. Duration and Timeline: Proposed timeline for negotiating the definitive agreement and intended duration of the final transportation services agreement

7. Due Diligence: Framework for the exchange of information and conduct of due diligence investigations

8. Binding and Non-Binding Provisions: Clear distinction between which provisions are intended to be binding and which are non-binding

9. Exclusivity: Whether there will be any exclusivity period during negotiations

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

11. Costs and Expenses: Each party's responsibility for costs incurred during the negotiation process

12. Governing Law: Specification that South African law governs the LOI

13. Signatures: Execution block for authorized signatories of both parties