Letter Of Intent (L.O.I.)
Letter in which a person formally sets out his / her intentions to do something (e.g. signing a contract) in certain circumstances, which are often specified in detail in the letter.
The letter does not constitute eigher a contract or a promise to do anything, but it does indicate the writer's serious wish to pursue the course set out.
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Date :
Ref. :
LETTER OF INTENT
WE, (Buyer’s Company Name), HEREBY WOULD LIKE TO CONFIRM!! OUR INTENT TO PURCHASE (Name of Goods) FROM (Country of Origin) WITH THE FOLLOWING TERMS AND CONDITIONS:
1. COMMODITY : XXXXX
2. TOTAL QUANTITY : XXXXX MT PER MONTH FOR XX MONTHS FOR A TOTAL QUANTITY OF XXXX MTPER YEAR, 10% MORE OR LESS
AT THE SELLER'S OPTION.
3. SPECIFICATIONS : XXXXX
4. UNIT PRICE : USDXXX/MT CFR
5. ORIGIN : XXXXX
6. PACKING : XXXXX
7.
8.
9. SHIPMENT : WITHIN XX DAYS AFTER THE DATE OF ISSUANCE OF L/C.
10. INSPECTION : BY SGS AT THE
11. PERFORMANCE BOND : WITHIN X DAYS AFTER SIGNING THE CONTRACT, THE SELLER SHALL ISSUE A NON-OPERATIVE PBGOF 2% OF VALUE OF MONTHLLY SHIPMENT TO THE BUYER’ BANK.
12. PAYMENT : THE BUYER SHALL TRANSFER A 100% IRREVOCABLE REVOLVING LETTER OF CREDIT AT SIGHT TO ACTIVATE THE PBG WITHIN 7 WORKING DAYS AFTER THE BUYER
RECEIVS THE NON-OPERATIVE PBG.
13. PROCEDURE :
1) THE BUYER SENDS THE LOI TO THE SELLER.
2) THE SELLER SENDS HIS CONFIRM!!ATION OR THE FULL CORPORATE OFFER TO
THE BUYER.
3) SELLER AND BUYER EXCHANGE SIGNED AND SEALED HARD COPY OF CONTRACT.
4) WITHIN 5 BANKING DAYS FROM THE DATE OF RECEIPT OF SIGNED & SEALED
HARD COPY, THE SELLER SHOULD ISSUE THE PBG TO THE BUYER’BANK FROM
THE SELLER’S BANK.
5) THE BUYER SHOULD TRANSFER 100% IRREVOABLE LETTER OF CREDIT IN
FAVOR OF THE SELLER.
6) SELLER WILL ARRANGE FOR BUYERS VISIT TO THE
BUYER’S COST IF NEEDED.
7) SHIPMENT COMMENCES AS AGREED ACCORDING TO THE CONTRACT.
14. BANK DETAILS
Bank Name :
Address :
Swift Code :
Tel. No. :
Fax No. :
A/C Name :
A/C No. :
With Best Regards,