Letter Of Intent To Supply Goods - Austria

Letter Of Intent To Supply Goods Template for Austria

A Letter of Intent to Supply Goods under Austrian law is a preliminary document that outlines the proposed terms and conditions for a future supply arrangement between parties. Governed by Austrian commercial law, particularly the Austrian Commercial Code (UGB) and Civil Code (ABGB), this document serves as a framework for negotiations while typically maintaining a non-binding nature except for specific provisions such as confidentiality and exclusivity. The document addresses key commercial terms, including proposed pricing, delivery schedules, and product specifications, while establishing the groundwork for a more detailed, definitive supply agreement.

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What is a Letter Of Intent To Supply Goods?

The Letter Of Intent To Supply Goods is commonly used in Austrian commercial practice as a preliminary step before entering into a formal supply agreement. It serves to document the parties' intentions and establish the basic framework for their future relationship while negotiations for a definitive agreement are ongoing. This document type is particularly useful in complex supply arrangements where parties need to outline their understanding of key commercial terms, timing, and conditions before committing resources to detailed negotiations. Under Austrian law, while most provisions are typically non-binding, certain clauses such as confidentiality and exclusivity can be made explicitly binding. The document helps manage expectations, outline the proposed structure of the transaction, and provide a roadmap for negotiations, while operating within the framework of Austrian commercial law and EU regulations.

What sections should be included in a Letter Of Intent To Supply Goods?

1. Date and Parties: Identification of sender and recipient with full legal names and addresses

2. Introduction: Brief statement of intent to enter into a supply relationship

3. Proposed Transaction: Overview of the contemplated supply arrangement including type of goods, estimated quantities, and intended timeframe

4. Commercial Terms: Outline of proposed pricing, delivery terms, and payment conditions

5. Timeline: Expected timeline for negotiation and execution of definitive agreement

6. Non-Binding Nature: Clear statement that the letter is non-binding except for specified provisions

7. Binding Provisions: Specific provisions that are intended to be binding (typically confidentiality, exclusivity if applicable, and governing law)

8. Signature Block: Space for signatures of authorized representatives

What sections are optional to include in a Letter Of Intent To Supply Goods?

1. Exclusivity Period: Optional clause establishing a period during which parties agree not to negotiate with others - include when exclusive negotiations are desired

2. Due Diligence: Include when specific due diligence requirements or process needs to be outlined

3. Conditions Precedent: Include when there are specific conditions that must be met before proceeding with the definitive agreement

4. Cost Allocation: Include when there's a need to specify how costs during the negotiation period will be handled

5. Termination Provisions: Optional section on how and when the letter of intent can be terminated - include in more complex arrangements

What schedules should be included in a Letter Of Intent To Supply Goods?

1. Product Specification Sheet: Detailed technical specifications of the goods to be supplied

2. Preliminary Pricing Schedule: Indicative pricing structure and terms, if too detailed for main letter

3. Proposed Delivery Schedule: Preliminary timeline and logistics for supply arrangement

4. Key Commercial Terms Summary: Summary of main commercial points for quick reference

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok��˰� | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

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Download a Standard Letter Of Intent To Supply Goods

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What is a Letter Of Intent To Supply Goods?

What sections should be included in a Letter Of Intent To Supply Goods?

What sections are optional to include in a Letter Of Intent To Supply Goods?

What schedules should be included in a Letter Of Intent To Supply Goods?

Authors

Alex Denne

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