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Letter Of Intent To Supply Goods for the United Kingdom

Letter Of Intent To Supply Goods Template for England and Wales

A Letter of Intent to Supply Goods is a preliminary document governed by English and Welsh law that outlines the intention of parties to enter into a formal supply agreement. While not typically legally binding in its entirety, it sets out key commercial terms, specifications, and timelines for the proposed supply arrangement. The document serves as a framework for negotiations and demonstrates serious intent while detailed terms are being finalized.

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What is a Letter Of Intent To Supply Goods?

A Letter Of Intent To Supply Goods is commonly used in commercial transactions when parties wish to formalize their intention to enter into a supply relationship before finalizing a detailed agreement. It typically precedes more comprehensive contracts and is particularly useful in complex supply arrangements where detailed negotiations may take time. Under English and Welsh law, while most provisions are typically non-binding, certain elements such as confidentiality and exclusivity may be explicitly made binding. The document helps establish clear communication of intentions, basic commercial terms, and timeline expectations.

What sections should be included in a Letter Of Intent To Supply Goods?

1. Opening Statement: Identifies the parties and establishes this as a Letter of Intent

2. Purpose: Clear statement of intention to enter into a supply arrangement

3. Goods Description: Specific details of the goods to be supplied

4. Timeline: Expected dates for formal agreement and supply commencement

5. Commercial Terms: Basic outline of pricing and payment terms

6. Non-Binding Statement: Clarification of which terms are binding/non-binding

7. Signature Block: Space for authorized signatures and dates

What sections are optional to include in a Letter Of Intent To Supply Goods?

1. Exclusivity: Terms preventing negotiation with other suppliers during the negotiation period

2. Confidentiality: Terms protecting sensitive information exchanged during negotiations

3. Costs: Provisions regarding who bears the costs of negotiations and preparation

4. Termination: Conditions and process for ending negotiations

What schedules should be included in a Letter Of Intent To Supply Goods?

1. Product Specifications: Detailed technical specifications of goods to be supplied

2. Pricing Schedule: Detailed breakdown of prices for different products or volumes

3. Delivery Schedule: Proposed delivery dates, locations and quantities

4. Quality Standards: Required quality certifications and standards for the goods

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

England and Wales

Publisher

Ƶ

Document Type

Letter of Intent

Cost

Free to use
Relevant legal definitions
















Clauses



















Industries

Sale of Goods Act 1979: Primary legislation governing contracts for the sale of goods in England and Wales. Covers fundamental aspects including quality standards, fitness for purpose, and transfer of title.

Supply of Goods and Services Act 1982: Legislation relevant when the supply of goods includes associated services. Sets out implied terms and obligations for mixed contracts involving both goods and services.

Consumer Rights Act 2015: Key legislation for business-to-consumer transactions. Establishes consumer rights regarding quality, fitness for purpose, and available remedies in case of breach.

Contracts (Rights of Third Parties) Act 1999: Legislation governing the rights of third parties to enforce terms of a contract. Important when considering supply chain relationships and potential third-party beneficiaries.

Unfair Contract Terms Act 1977: Legislation that restricts the ability to exclude or limit liability in contracts. Sets boundaries for reasonable limitation clauses in supply agreements.

Common Law Contract Principles: Fundamental legal principles covering contract formation, including intention to create legal relations, offer and acceptance, and consideration requirements.

UN Convention on International Sale of Goods (CISG): International treaty governing cross-border sale of goods. While UK is not a signatory, relevant when dealing with international counter-parties who are signatories.

Incoterms: International commercial terms that define responsibilities of buyers and sellers in international trade, including delivery terms and risk transfer points.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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