Document background
The Letter of Intent For Supplier is a crucial preliminary document used in the United Arab Emirates business environment when companies wish to formalize their intention to enter into a supplier relationship while maintaining flexibility for final negotiations. This document type is particularly relevant when dealing with significant supply arrangements that require detailed negotiation and due diligence before finalizing a full contract. It outlines key commercial terms, timelines, and any binding provisions (such as confidentiality and exclusivity) while clearly stating its generally non-binding nature. The document must comply with UAE Civil and Commercial Codes, considering local business practices and legal requirements. It's commonly used when companies need to demonstrate serious intent to their stakeholders, secure internal approvals, or commence detailed due diligence while protecting both parties' interests during the negotiation phase.
