The Letter of Intent to Supply Goods is a crucial preliminary document used in Hong Kong's business environment when parties are negotiating a significant supply arrangement but aren't yet ready to enter into a definitive agreement. This document type is particularly relevant in Hong Kong's dynamic trading environment, where it serves as a stepping stone towards more formal arrangements while allowing parties to outline their intentions and basic commercial terms. The LOI typically includes product specifications, proposed pricing, delivery terms, and any conditions that need to be met before proceeding to a final agreement. While generally non-binding (except for specific provisions), it demonstrates serious commercial intent and helps structure negotiations. It's commonly used in both domestic Hong Kong transactions and international trade relationships, particularly when detailed due diligence or further negotiations are required before finalizing a formal supply agreement.
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1. Letter Header: Company letterhead, date, and recipient's full address
2. Subject Line: Clear identification of the document as a Letter of Intent for Supply of [Specific Goods]
3. Opening Paragraph: Introduction of the parties and brief context of the proposed supply arrangement
4. Goods Description: Detailed description of the goods to be supplied, including specifications, quantities, and quality standards
5. Commercial Terms: Proposed pricing, payment terms, and delivery arrangements
6. Duration: Intended timeframe for the supply arrangement and any key dates
7. Next Steps: Process for moving forward, including timeline for formal agreement
8. Non-Binding Statement: Clear statement regarding which provisions are binding/non-binding
9. Confidentiality: Basic confidentiality obligations regarding the proposed arrangement
10. Closing: Signature blocks and formal letter closing
1. Exclusivity: Include when parties want to establish exclusive negotiation rights for a specific period
2. Due Diligence: Include when specific investigation or verification processes are required before formal agreement
3. Conditions Precedent: Include when certain conditions must be met before proceeding to formal agreement
4. Governing Law: Include when parties want to specify applicable law, particularly in cross-border transactions
5. Break Fee: Include when parties want to establish compensation if one party withdraws from negotiations
6. Cost Allocation: Include when parties need to specify who bears the costs of negotiation and due diligence
1. Product Specifications: Detailed technical specifications of the goods to be supplied
2. Pricing Schedule: Detailed breakdown of prices, particularly if multiple products or volume-based pricing applies
3. Delivery Schedule: Proposed delivery timeframes and locations, if complex or multiple deliveries are involved
4. Quality Standards: Specific quality requirements, certifications, or standards that the goods must meet
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Retail
Wholesale Trade
Electronics
Consumer Goods
Industrial Equipment
Automotive
Pharmaceuticals
Food and Beverage
Textiles
Construction Materials
Chemical Industry
Agriculture
Medical Supplies
Technology Hardware
Relevant Teams
Legal
Procurement
Supply Chain
Commercial
Operations
Finance
Sales
Business Development
Logistics
Risk Management
Compliance
International Trade
Relevant Roles
Procurement Manager
Supply Chain Director
Commercial Director
Chief Operating Officer
Purchasing Manager
Legal Counsel
Contract Manager
Business Development Manager
Operations Manager
Import/Export Manager
Sourcing Manager
Logistics Manager
Chief Financial Officer
Sales Director
General Manager
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