The Letter Of Intent To Supply Goods is a crucial preliminary document used in Belgian commercial practice when parties are preparing to enter into a formal supply relationship but need to document their intentions and key terms before finalizing a binding agreement. It is particularly relevant in complex supply arrangements where detailed negotiations are necessary, or when parties need to demonstrate commitment to their stakeholders. The document typically includes proposed commercial terms, timelines, and any conditions precedent to the final agreement, while operating within the Belgian legal framework that emphasizes good faith in pre-contractual negotiations. This type of document is especially useful in international trade contexts, given Belgium's position as a major European logistics hub, and must consider both Belgian civil law requirements and applicable EU regulations.
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1. Letter Header: Date, recipient details, and company letterhead
2. Introduction: Identification of the parties and their authorized representatives
3. Purpose Statement: Clear statement of intent to enter into a supply agreement and brief context of the proposed relationship
4. Scope of Supply: Description of goods to be supplied, estimated quantities, and general specifications
5. Commercial Terms: Preliminary pricing structure, payment terms, and delivery arrangements
6. Timeline: Proposed timeline for negotiating and executing the final agreement
7. Non-Binding Nature: Clear statement about which provisions are non-binding vs. binding
8. Confidentiality: Terms regarding the confidential treatment of information exchanged
9. Exclusivity: If applicable, terms of exclusive negotiations during the LOI period
10. Closing: Signature blocks and formal closing of the letter
1. Due Diligence: Include when there's a need for investigation or verification of specific aspects before final agreement
2. Costs and Expenses: Include when there are significant pre-contract costs to be addressed
3. Governing Law: While Belgian law is applicable, explicit confirmation may be included for international parties
4. Break Fee: Include when parties want to specify compensation if negotiations are terminated
5. Term and Termination: Include when the LOI needs to be valid for a specific period
6. Regulatory Approvals: Include when the final agreement requires specific regulatory clearances
1. Initial Product Specifications: Preliminary technical specifications of the goods to be supplied
2. Proposed Timeline: Detailed timeline for negotiations, due diligence, and execution of final agreement
3. Draft Term Sheet: Key commercial terms to be included in the final supply agreement
4. Current Supply Chain Map: Overview of proposed logistics and delivery arrangements
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