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The Letter of Intent to Become a Distributor is a crucial preliminary document used when companies wish to establish a distribution relationship but need to formalize their initial understanding before proceeding with a comprehensive distribution agreement. This document is particularly relevant in the Pakistani market, where distribution relationships often require careful consideration of territorial rights, regulatory compliance, and market-specific conditions. The LOI typically includes proposed commercial terms, territory definitions, product scope, and timeline for finalizing the formal agreement. While predominantly non-binding, it may contain certain binding provisions such as confidentiality and exclusivity during negotiations. The document must align with Pakistani legal requirements, including the Contract Act 1872 and various provincial commercial regulations. It serves as a roadmap for negotiations and helps parties align their expectations before investing significant resources in detailed contract negotiations.

1. Date and Addressee Details: Opening of the letter with date and complete details of both parties

2. Expression of Intent: Clear statement of intention to enter into a distribution relationship

3. Business Context: Brief background about both companies and the rationale for the proposed relationship

4. Proposed Territory: Specification of the geographical area where distribution rights will be granted

5. Product Range: Description of products to be distributed

6. Key Commercial Terms: Overview of primary business terms including pricing structure, minimum purchase requirements, and payment terms

7. Duration: Proposed timeframe for negotiating and executing the final agreement

8. Non-Binding Nature: Statement clarifying the non-binding nature of the LOI (except for any specifically binding provisions)

9. Signature Block: Space for signatures of authorized representatives from both parties