Formal letter of intent is a formal declaration of intention one company or individual send to the another. Letter of intent is in some countries legally binding, meaning that company which sent the letter of intent to the another might face some penalties or charges in the case it fails to take actions in accordance with the letter of intent. Letter is typical formal business letter and follows the classic layout. When writing a letter of intent to purchase following details have to be specified;
1. Product (s) name
2. Origin of the product (s)
4. Delivery terms and packing
5. Payment details.
In the text below we have provided you a letter of intent template which you can use for declaration of intention to conclude a purchase of goods.
Subject: Letter of Intent to Purchase (Subject of purchase)
Dear Sir, Madam,
We take this opportunity to declare our intention to purchase ___________ (Subject of purchase) from your organization in ______ (city, state, country). Our company is duly organized and existing under the laws of the State of Arizona, based on its Deed of Incorporation and Articles of Association dated on MM/DD/YYYY. The principal business address of our company is at _____(address), while our principle activities include: wholesale trade, export, distribution, and limited production of final goods.
In line with the above stated, we, ______ (Name of buyers company), hereby confirm with full responsibility that we are willing and able to enter into contract for the purchase of the following items, as specified below, and that funding is available, including any import or export permits that may occur for the benefit of this particular purchase;
Origin of the good: ___________________
Total quantity: ___________ (mesurment)
Destination Port: ____________________
Delivery Terms: _____________________
Payment method: ____________________
We understand that this letter of intent is a starting point for further negotiations and operates as a framework under which the transaction can proceed.
We look forward to working with you on this proposal, hopefuly beneficial for both entities.