Download Letter Of Intent For Purchase Order - Singapore

Letter Of Intent For Purchase Order for Singapore

Letter Of Intent For Purchase Order Template for Singapore

A Letter of Intent for Purchase Order under Singapore law is a preliminary document that outlines the intent of one party to purchase goods or services from another party. It serves as a framework for future negotiations while establishing key commercial terms such as price, quantity, and delivery schedules. While generally non-binding in nature, it can include certain binding provisions such as confidentiality and exclusivity. The document follows Singapore contract law principles and must comply with the Sale of Goods Act and other relevant legislation.

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What is a Letter Of Intent For Purchase Order?

A Letter of Intent for Purchase Order is commonly used in Singapore business transactions as a preliminary step before executing a formal purchase order. It demonstrates serious interest in proceeding with a transaction while allowing parties to negotiate final terms. The document typically includes proposed commercial terms, timelines, and any conditions precedent that need to be satisfied. Under Singapore law, while most provisions are non-binding, certain elements like confidentiality can be made explicitly binding. This document is particularly useful in complex transactions where parties need to demonstrate commitment while maintaining flexibility for due diligence and final negotiations.

What sections should be included in a Letter Of Intent For Purchase Order?

1. Sender and Recipient Details: Full legal names and addresses of both parties, including registration numbers if applicable

2. Date: Date of the letter of intent

3. Subject Line: Clear indication that this is a Letter of Intent for Purchase Order

4. Introduction: Opening paragraph establishing the purpose of the letter and parties involved

5. Product/Service Description: Detailed description of the goods or services to be purchased

6. Commercial Terms: Key commercial terms including quantity, price, payment terms, and delivery schedule

7. Duration: Validity period of the Letter of Intent

8. Non-Binding Statement: Clear statement indicating which provisions are binding or non-binding

9. Closing: Formal closing paragraph with next steps

10. Signature Block: Space for signatures, names, and titles of authorized representatives

What sections are optional to include in a Letter Of Intent For Purchase Order?

1. Exclusivity: Terms granting exclusive negotiating rights for a specified period

2. Due Diligence: Provisions for product inspection, quality verification, or other due diligence processes

3. Confidentiality: Terms regarding the protection and handling of confidential information shared during negotiations

4. Governing Law: Specification of Singapore law as governing law (if parties want to make this binding)

5. Conditions Precedent: Any conditions that must be met before proceeding with the final purchase order

What schedules should be included in a Letter Of Intent For Purchase Order?

1. Product Specifications: Detailed technical specifications of the goods to be purchased

2. Pricing Schedule: Detailed breakdown of prices, especially for multiple items or volume-based pricing

3. Delivery Schedule: Detailed timeline for delivery, particularly for multiple shipments or phased deliveries

4. Required Documentation: List of documents required for the transaction (e.g., certificates, permits, warranties)

Authors

Alex Denne

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

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Free to use

Relevant legal definitions

Clauses

Relevant Industries

Manufacturing
Technology
Retail
Construction
Healthcare

Relevant Teams

Procurement
Legal
Finance
Operations
Supply Chain

Relevant Roles

Procurement Manager
Supply Chain Director
Commercial Director
Legal Counsel
Chief Financial Officer

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What is a Letter Of Intent For Purchase Order?

What sections should be included in a Letter Of Intent For Purchase Order?

What sections are optional to include in a Letter Of Intent For Purchase Order?

What schedules should be included in a Letter Of Intent For Purchase Order?

Authors

Alex Denne

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