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A Letter of Intent to Supply Goods is commonly used in German business practice as a preliminary step before entering into a definitive supply agreement. It serves to document the parties' serious intention to negotiate and conclude a formal supply contract while establishing the fundamental terms and conditions that will form the basis of their future relationship. The document is particularly useful in complex supply arrangements where detailed negotiations are necessary and where parties need to conduct due diligence before committing to a binding agreement. Under German law, while most provisions are non-binding, certain obligations such as confidentiality and good faith negotiations can create legal commitments. The document typically includes proposed commercial terms, timelines, and any specific requirements for moving forward with the transaction, while being governed by both the German Civil Code (BGB) and Commercial Code (HGB).

1. Date and Addressee Details: Full legal name and address of the recipient company

2. Subject Line: Clear indication that this is a Letter of Intent regarding supply of specific goods

3. Introduction: Identity of the sender and brief context of the business relationship

4. Purpose Statement: Clear statement of intent to enter into a supply arrangement and brief description of the proposed transaction

5. Key Commercial Terms: Outline of principal terms including goods description, estimated quantities, proposed pricing structure, and delivery terms

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

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

8. Binding Provisions: Specification of which provisions are legally binding (typically confidentiality, exclusivity if applicable, and governing law)

9. Closing and Signature: Formal closing, signature blocks for both parties