Letter of Intent (Commodity)

Letterhead

{{company_name}}

{{company_address}}

Phone: {{phone}}

Email: {{email}}

Website: {{website}}

Date

{{date}}

Recipient Information

{{recipient_company_name}}

{{recipient_company_address}}

Attention: {{recipient_contact_person}}

Subject

Letter of Intent to Purchase {{commodity_name}}

Introduction

Dear {{recipient_contact_person}},

This Letter of Intent (the “LOI”) sets forth the mutual understanding and preliminary agreement between {{buyer_company_name}} (referred to herein as “Buyer”) and {{seller_company_name}} (referred to herein as “Seller”) regarding the potential purchase of {{commodity_name}} (the “Commodity”).

Description of Commodity

The Commodity subject to this LOI is {{commodity_name}}, with the following specifications:

- Quantity: {{quantity}} {{unit_of_measure}}

- Quality/Grade: {{quality_grade}}

- Origin: {{origin}}

- Packaging: {{packaging_details}}

Proposed Purchase Price and Payment Terms

The proposed purchase price for the Commodity is {{currency}} {{price_per_unit}} per {{unit_of_measure}}, totaling an estimated {{currency}} {{total_estimated_price}}. This price is subject to final negotiation.

Proposed payment terms are as follows: {{payment_terms}} (e.g., {{percentage}}% advance payment, balance upon delivery/inspection).

Delivery and Logistics

Proposed delivery terms are {{incoterms_standard}} (e.g., FOB, CIF).

Port of Loading: {{port_of_loading}}

Port of Discharge: {{port_of_discharge}}

Estimated Delivery Date(s): {{estimated_delivery_dates}}

Conditions Precedent

This LOI is subject to the satisfaction of the following conditions precedent:

- Successful due diligence by Buyer regarding the Commodity and Seller’s capacity to supply.

- Finalization of a formal Sale and Purchase Agreement (SPA) acceptable to both parties.

- Obtaining all necessary regulatory approvals and licenses.

Confidentiality

Both parties agree to treat all information exchanged during the negotiation of this LOI and any subsequent formal agreement as confidential and will not disclose it to any third party without prior written consent, except as required by law.

Non-Binding Nature

This LOI is intended to outline the basic terms and conditions of a proposed transaction and is expressly understood to be non-binding on both parties. A legally binding agreement will only arise upon the execution of a definitive Sale and Purchase Agreement (SPA) by both Buyer and Seller.

Governing Law

This LOI shall be governed by and construed in accordance with the laws of {{country_of_governing_law}}.

Signature Block

Sincerely,

For and on behalf of {{buyer_company_name}}:

_____________________________

Name: {{buyer_signatory_name}}

Title: {{buyer_signatory_title}}

Date: {{date}}

For and on behalf of {{seller_company_name}}:

_____________________________

Name: {{seller_signatory_name}}

Title: {{seller_signatory_title}}

Date: {{date}}