A Letter of Intent to Purchase Product is commonly used in Singapore business transactions as a preliminary step before entering into a formal purchase agreement. This document serves to formalize a potential buyer's serious interest while allowing both parties to proceed with due diligence and detailed negotiations. It typically includes product specifications, proposed pricing, timeline, and any conditions precedent to the final purchase. Under Singapore law, while most provisions are non-binding, certain elements like confidentiality and exclusivity can be made explicitly binding. The document provides a structured framework for negotiations while protecting both parties' interests during the pre-contractual phase.
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1. Sender and Recipient Details: Full legal names, addresses, and contact information of both the sender (prospective buyer) and recipient (seller)
2. Intent Declaration: Clear statement expressing the intention to purchase the specified product, subject to terms and conditions
3. Product Details: Specific description of the product, including relevant specifications, quantities, and any particular requirements
4. Commercial Terms: Proposed purchase price, payment terms, and delivery requirements
5. Timeline: Expected timeline for the transaction, including key milestones and proposed completion date
6. Governing Law: Statement that the letter and any resulting transaction will be governed by Singapore law
1. Due Diligence Provisions: Terms regarding the inspection and verification of the product, typically included for complex or high-value transactions
2. Exclusivity Period: Terms preventing the seller from negotiating with other parties for a specified period
3. Confidentiality Obligations: Provisions regarding the treatment of confidential information exchanged during negotiations
4. Conditions Precedent: Any conditions that must be satisfied before proceeding with the purchase
5. Non-Binding Clause: Statement clarifying which provisions are non-binding versus binding commitments
1. Product Specifications: Detailed technical specifications, features, and requirements of the product
2. Proposed Payment Schedule: Detailed breakdown of payment terms, installments, and timing if applicable
3. Due Diligence Checklist: List of required documentation, certifications, or verification processes
4. Proposed Timeline: Detailed schedule of key dates and milestones for the transaction
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