Trading portalTEMPLATE ONLY, NOT LEGAL ADVICE. This is a generic starting point published free by info2fuel. Have a qualified lawyer in your jurisdiction review and adapt it before you sign or send it. info2fuel accepts no liability for its use.
[BUYER COMPANY LETTERHEAD] [DATE] To: [SELLER LEGAL NAME] Attention: [NAME, TITLE] Re: Letter of Intent to purchase [PRODUCT]
[BUYER LEGAL NAME] ("Buyer"), registered in [COUNTRY] under number [NO.], confirms its interest in purchasing the product described below, subject to contract:
- Product: [e.g. Ultra-low sulfur diesel EN 590:2022 (10 ppm) / ASTM D975 ULSD / Jet A-1 per DEF STAN 91-091 and AFQRJOS]
- Quantity: [e.g. trial cargo of 30,000 MT ±5% at Buyer's option, then up to [X] MT per month for [N] months, subject to satisfactory performance]
- Delivery terms: [FOB named load port / CIF named discharge port / DAP named terminal], Incoterms® 2020
- Delivery window / laycan: [DATES]
- Price basis: [e.g. Platts [assessment] average over [pricing period] plus/minus USD [X] per MT, or fixed price to be agreed]
- Payment: [e.g. irrevocable documentary letter of credit (MT700) payable at sight / [30] days after B/L date against compliant documents]
- Inspection: quantity and quality determined at the load port by an independent inspector appointed by [Buyer/jointly], costs [shared equally / for Buyer's account]
- Origin: Seller to warrant origin by certificate of origin; no product of sanctioned origin will be accepted
- Documents requested from Seller: company registration, evidence of title or terminal confirmation of stock, product specification, draft SPA
This letter is an expression of intent only. It is not an offer capable of acceptance and creates no binding obligation on either party, which will arise only on signature of a sale and purchase agreement. Buyer will not pay any fee or deposit before signature of that agreement and opening of the agreed payment instrument.
This LOI is valid until [DATE]. Please reply to [NAME, EMAIL ON COMPANY DOMAIN, PHONE].
For and on behalf of [BUYER LEGAL NAME] Name: [NAME] Title: [TITLE] Signature: ______________________ Date: [DATE]