99. Letters of Intent from SuppliersBy Roger Bryan
Your company has conducted negotiations to sell the products or some facilities, the terms and conditions have been finalized by the both parties. Now, it is the time to issue letter of intent from supplier. The points which should be covered are the dates of start and end of the contract, the payment of compensation, the issue of warranty if required and the payment method.
Basically, the letter of intent from suppliers covers all the important points, which were agreed in the negotiations. The binding and non-binding of the letter of intent from suppliers, depends upon the wording which is employed in the letter. The letter of intent from the supplier depends upon the wording which is employed in the letter. As a supplier, you should make sure, the letter of intent from supplier should be non-binding as if any difficulty arises in eleventh hour and you want to cancel the deal, you can do it easily.
Otherwise, the other party in the business transaction may seek a legal solution of the matter. One of the advantages of the letter of intent from supplier is that it shows that the intention behind the business transaction is serious. It also sets all the parameters of the business between buyers and sellers clearly, so that there is no confusion.