Dear Sir / Madam,
We, [BUYER'S FULL LEGAL COMPANY NAME], incorporated under the laws of [COUNTRY OF INCORPORATION] (Company Registration No. [XXXX]), hereby submit this Letter of Intent to Purchase (this "LOI") the commodity described herein. This LOI is issued in good faith and represents our genuine commercial interest in the transaction. It is non-binding in nature but shall serve as the basis for the preparation of a formal Irrevocable Corporate Purchase Order (ICPO) and, thereafter, a Sales and Purchase Agreement (SPA).
We confirm that we have reviewed and accepted the terms of the Non-Circumvention, Non-Disclosure and Fee Protection Agreement (NCNDA/IMFPA) Ref. [NCNDA-REF-XXXX] dated [DATE].
| Commodity | [e.g., HMS 1&2 Scrap Metal / Sugar ICUMSA 45 / EN590 Diesel / Jet A1 / Non-GMO Soybean] |
| Grade / Specification | [e.g., ISRI 200/205 / ICUMSA max 45 IU / EN590:2022 10ppm Sulphur / ASTM D1655] |
| Origin | [ACCEPTABLE COUNTRY/REGION OF ORIGIN — e.g., EU/UK / Brazil / Russia] |
| Quantity (Trial Shipment) | [XXXX METRIC TONS] (+/- [X]%) at Buyer's option |
| Subsequent Shipments | [XXXX METRIC TONS] per month for [XX] months |
| Total Contract Volume | Approximately [XXXX METRIC TONS] |
| Target Price (Indicative) | USD [XXX.XX] per Metric Ton ([Incoterm — e.g., CIF Port of Rotterdam]) |
| Incoterms | [CIF / FOB / CFR] [NAMED PORT OF DELIVERY], Incoterms® 2020 |
| Port of Discharge | [FULL PORT NAME, COUNTRY] |
| Pricing Basis | [Fixed price / Linked to LME/PLATTS/ICE — specify index and premium/discount] |
| Price Review | [Monthly / Quarterly / Fixed for contract duration] |
| Preferred Shipment Start | Within [XX] days of SPA execution and L/C issuance |
| Payment Method | Irrevocable, Confirmed, Transferable Documentary Credit (Letter of Credit) at sight, governed by UCP 600, issued via SWIFT MT700 |
| Issuing Bank | [FULL BANK NAME], [CITY, COUNTRY] |
| Bank SWIFT / BIC | [SWIFT BIC CODE] |
| L/C Validity Period | [XX] days from date of issue |
| L/C Confirmation | Buyer will instruct issuing bank to issue [CONFIRMED / UNCONFIRMED] L/C |
| Advance Payment | [None / X% advance payment via MT103 wire — specify if applicable] |
| Inspection Agency | SGS S.A. or Bureau Veritas — Buyer's and Seller's joint appointment |
| Inspection Point | At load port (pre-shipment inspection) |
| Documents Required | Certificate of Quality (COQ), Certificate of Weight (COW), Certificate of Origin, Radiation Clearance Certificate, Bill of Lading (full set, 3/3 originals) |
| Quality Dispute | Any dispute regarding quality shall be resolved by [SGS / THIRD INDEPENDENT LABORATORY] whose findings shall be final and binding |
We hereby confirm the following:
(a) We are a duly incorporated and validly existing legal entity in good standing under the laws of [COUNTRY];
(b) We have the legal authority and financial capacity to execute this purchase;
(c) Our principal bank, [BANK NAME], is capable of and instructed to issue a Documentary Credit (MT700) in accordance with UCP 600 upon agreement of the SPA;
(d) We have conducted our own due diligence in respect of the commodity and the proposed transaction;
(e) We are not subject to any OFAC, EU, UN, or UK OFSI sanctions or restrictions;
(f) We will provide full KYC documentation as required by the seller and/or their intermediary within [5] business days of request;
(g) The end-use of the purchased commodity is: [STATED END-USE — e.g., steel mill feed, refinery input, food processing].
This LOI is valid until [DATE]. Upon receipt of a satisfactory Full Corporate Offer (FCO) from the seller confirming the above terms, we undertake to issue a formal Irrevocable Corporate Purchase Order (ICPO) within [X] business days, and to execute a Sales and Purchase Agreement (SPA) within [X] business days thereafter.
We are prepared to provide a Bank Comfort Letter (BCL) or arrange for a bank-to-bank MT799 pre-advice to the seller's bank confirming our financial capacity, upon mutual agreement and execution of a full NCNDA/IMFPA.
Yours sincerely,
Signed: ___________________________
Name: [PRINT FULL NAME]
Title: [DIRECTOR / AUTHORISED OFFICER]
Company: [COMPANY NAME]
Date: [DD / MM / YYYY]
Company Stamp: ___________________
Signed: ___________________________
Name: [PRINT FULL NAME]
Title: [DIRECTOR / AUTHORISED OFFICER]
Date: [DD / MM / YYYY]
Receipt of this LOI does not constitute acceptance of its terms.