The Non-Binding Letter of Intent to Purchase Product is commonly used in Indonesian business transactions as a preliminary step before entering into a formal purchase agreement. This document is particularly useful when parties need to formally express their commercial intentions while maintaining flexibility in negotiations. It helps establish the framework for future discussions while clearly stating its non-binding nature. The document is governed by Indonesian law, particularly the Civil Code and commercial regulations, and typically includes key commercial terms, proposed timelines, and basic conditions for the potential transaction. It's especially valuable in complex procurement scenarios, international trade dealings, or when dealing with high-value products where detailed due diligence and negotiation are necessary before finalizing a binding agreement.
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1. Date and Addresses: Opening of the letter with current date and full addresses of both parties
2. Subject Line: Clear identification that this is a Non-Binding Letter of Intent for Product Purchase
3. Introduction: Formal greeting and identification of the parties (buyer and seller)
4. Purpose Statement: Clear statement of intention to purchase specific products or enter into a purchase arrangement
5. Product Description: Brief description of the products or services intended to be purchased
6. Proposed Terms: High-level outline of key commercial terms including estimated quantity, price range, and timeline
7. Non-Binding Nature: Clear statement that the letter is non-binding and does not constitute a formal agreement
8. Next Steps: Outline of the proposed process moving forward, including due diligence and formal agreement timeline
9. Confidentiality: Basic statement about treating discussions and information confidentially
10. Closing: Formal closing, signature blocks for both parties
1. Exclusivity Period: Optional clause requesting exclusive negotiations for a specified period - include when dealing with unique products or competitive situations
2. Conditions Precedent: Include when there are specific conditions that need to be met before proceeding with the formal purchase agreement
3. Cost Allocation: Include when there are significant due diligence or preparation costs to be addressed
4. Governing Law Reference: Include when dealing with international parties or complex transactions
5. Term/Expiration: Include when the LOI needs to have a specific validity period
6. Contact Details: Include when multiple stakeholders or specific points of contact need to be designated for the next steps
1. Product Specifications: Preliminary technical specifications or product details, if available
2. Proposed Timeline: Detailed timeline for negotiation, due diligence, and intended completion of the purchase
3. Preliminary Price Structure: Basic breakdown of proposed pricing, payment terms, or volume-based pricing tiers if applicable
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Retail
Technology
Agriculture
Mining
Consumer Goods
Industrial Equipment
Automotive
Electronics
Pharmaceuticals
Construction Materials
Textiles
Food and Beverage
Energy
Telecommunications
Relevant Teams
Procurement
Legal
Commercial
Supply Chain
Operations
Finance
Business Development
International Trade
Compliance
Strategic Planning
Relevant Roles
Procurement Manager
Commercial Director
Chief Executive Officer
Supply Chain Manager
Purchasing Director
Business Development Manager
Contract Manager
Legal Counsel
Operations Director
Chief Financial Officer
Import/Export Manager
Sourcing Specialist
Commercial Manager
General Manager
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