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The Letter of Intent for Purchase Order is a crucial business document commonly used in Philippine commercial transactions to formalize preliminary commitments between buyers and suppliers. This document serves as a precursor to a formal purchase order and is particularly valuable in situations involving significant purchases, complex transactions, or when parties need to demonstrate serious intent before proceeding with detailed negotiations. While governed by Philippine commercial law and contract principles, it typically maintains a non-binding nature unless specifically drafted otherwise. The document helps establish clear communication between parties, outlines basic terms and conditions, and provides a foundation for future negotiations. It's especially useful in situations where parties need to secure internal approvals, arrange financing, or coordinate logistics before issuing a formal purchase order. The Letter of Intent helps mitigate risks by clearly documenting preliminary understandings and expectations between parties.

1. Letter Header: Full business details of the sender including company name, address, and date

2. Recipient Details: Complete details of the recipient including name, title, company name, and address

3. Subject Line: Clear indication that this is a Letter of Intent for Purchase Order with reference numbers if applicable

4. Opening Statement: Formal introduction stating the purpose of the letter and identifying both parties

5. Product/Service Details: Specific description of items or services to be purchased, including quantities and specifications

6. Commercial Terms: Proposed pricing, payment terms, and delivery requirements

7. Timeline: Expected timeline for finalizing the purchase order and delivery schedule

8. Next Steps: Clear outline of the process to move forward with the formal purchase order

9. Non-Binding Statement: Statement clarifying that this is a non-binding letter of intent (unless intended otherwise)

10. Closing: Professional closing statement with signature block for authorized representative