A Letter of Intent for Distributorship is commonly used in Singapore when companies are initiating distribution relationships but need to establish preliminary terms before committing to a full agreement. It serves as a roadmap for negotiations while protecting both parties' interests during discussions. The document typically includes proposed commercial terms, territorial rights, product scope, and duration of the intended relationship. While maintaining flexibility for negotiations, it provides structure and demonstrates serious intent to proceed. Under Singapore law, while most provisions are non-binding, certain clauses such as confidentiality and exclusivity can be made explicitly binding.
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1. Statement of Intent: Clear expression of parties' intention to enter into a distribution relationship
2. Parties' Information: Complete details of both manufacturer/supplier and potential distributor
3. Product Description: Brief description of products to be distributed
4. Territory: Proposed geographical area of distribution
5. Duration: Proposed timeframe for negotiating final agreement
6. Non-Binding Nature: Statement clarifying LOI is non-binding except for specific clauses
1. Preliminary Terms: Key commercial terms being considered for final agreement, used when parties want to document initial commercial understanding
2. Exclusivity Period: Period during which parties agree not to negotiate with others, used when exclusive negotiations are desired
3. Due Diligence: Framework for information sharing and verification, used when significant due diligence is required
1. Product List: Preliminary list of products to be distributed
2. Territory Map: Visual representation of proposed distribution territory
3. Initial Business Plan: High-level overview of proposed distribution strategy
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