LETTER OF INTENTION (LOI)
For the Sale and Purchase of Cargo
Date: [Insert Date]
To:
[Seller’s Name or Company]
[Address]
[Email / Fax]
From:
[Buyer’s Name or Company]
[Address]
[Email / Fax]
Subject: Letter of Intention to Purchase [Type of Cargo – e.g., Diesel Fuel (D2), Crude Oil, LNG, Copper Cathode, etc.]
Dear [Seller’s Name],
We, [Buyer’s Company Name], hereby submit this Letter of Intention (LOI) to confirm our genuine interest and readiness to enter into a contract for the purchase of [Cargo Type] under the terms and conditions stated below.
1. Product Specifications
Product: [e.g., Diesel EN590 10ppm, Copper Cathode, etc.]
Quantity: [e.g., 50,000 metric tons per month for 12 months]
Origin: [Specify if known or acceptable – e.g., Any seller-approved origin]
Delivery Terms: [e.g., CIF/CFR/FOB – Destination Port]
Destination Port: [Specify port name and country]
2. Pricing & Payment
Price: [Specify – e.g., USD [amount] per MT, CIF basis]
Payment Terms: [e.g., Irrevocable, Non-Transferable Documentary Letter of Credit (LC) at sight, issued by a top-tier bank]
3. Performance & Delivery
Delivery Schedule: [e.g., First shipment within 30 days after contract signing and financial instrument issuance]
Inspection: SGS or equivalent at loading and discharge ports, at seller’s cost at loading and buyer’s cost at discharge.
4. Documentation
The seller shall provide full proof of product and standard shipping documents, including but not limited to:
Commercial Invoice
Packing List
Certificate of Origin
Certificate of Quantity and Quality (SGS or equivalent)
Bill of Lading (full set, clean on board)
5. Banking Information
Buyer’s Bank: [Bank Name, Address, SWIFT Code]
Seller’s Bank: [To be provided upon acceptance of LOI]
6. Validity
This Letter of Intention is valid for [number of days, e.g., 15 days] from the date of issuance. It is issued in good faith to demonstrate our serious intent to proceed to a formal Sale and Purchase Agreement (SPA) upon mutual agreement of the terms.
We confirm that we have the financial capability to fulfill this purchase and are prepared to provide verifiable proof of funds (POF) upon receipt of seller’s soft corporate offer (SCO).
Thank you for your consideration. We look forward to establishing a mutually beneficial relationship.
Sincerely,
[Authorized Signatory Name]
[Title / Position]
[Buyer’s Company Name]
[Company Address]
[Email / Phone]
[Company Registration No.]
[Signature & Company Seal, if applicable]