LETTER OF INTENT (LOI) / IRREVOCABLE CORPORATE PURCHASE ORDER (ICPO)

To:

Date:

Ref:

LETTER OF INTENT (LOI) / IRREVOCABLE CORPORATE PURCHASE ORDER (ICPO)

The undersigned buyer …………….. with its principal offices located at………….(hereinafter ‘BUYER’) hereby states and represents that it is BUYER’s corporate intention to purchase and we hereby confirm that we are ready, willing and able to purchase the following commodity as per specification and in the quantity and for the price as specified in the terms and conditions as stated below.

Commodity:

Target Price: 

Destination Port:

Total quantity:

Contract Length:

Delivery per month:

Origin: ……………………….

Specifications and Standards:

Packaging:

Inspection: quality, quantity, weight, by SGS or Equivalent at seller’s cost at loading port

Performance guarantee: 2%

Mode of payment: indicate type of L/C (Letter of Credit)

Shipping schedule: within …… days after receiving confirmation of Letter of Credit in SELLER’s bank. Shipping schedule to be provided in final contract.

Validity of LOI:

Banking Information:

BUYER’s (L/C Issuing) Bank Coordinates:

Bank Name:

Branch:

Full Address:

Account Name:

Account Number:

Swift Code:

Bank Contact:

Phone number:

E-mail:

Website:

Confirming Bank

Bank Name

City:

Country

Swift Code

Step-by-step Preliminary Procedures

1)    BUYER issues LOI/ICPO with banking coordinates.

2)    Bank Endorsement signed and sealed by Bank Officials.

3)    SELLER issues FCO/Draft Contract with his bank details, bank comfort letter and draft performance bond to BUYER.

4)    BUYER signs FCO/Draft Contract (on each page) and returns to SELLER.

5)    SELLER issues Final Contract.

6)    BYER signs and Seal and send 1 copy by mail and 4 by DHL to the SELLER.

7)    SELLER signs and Seal and reverts 2 copies by DHL to the BUYER.

8)    BUYER opens a non operative transferable or non-transferable LC.

9)    SELLER provides POP and PB 2% Bank to Bank to Buyer.

10) Non operative LC becomes operative LC.

11) Shipment starts according to schedule ……. days from date of operative LC payment instrument.

BUYER understands, acknowledges, and hereby agrees that any offers and contracts are subject to SELLER’s successful verification of funds availability for the above proposed transaction.

BUYER hereby gives its written permission for SELLER to conduct a soft probe of BUYER’s bank account by way of BUYER’s Bank Officer, connected with the above proposed transaction.

BUYER understands, acknowledges, and hereby agrees to the procedures and terms as set forth in this document.

The undersigned BUYER hereby submits this Letter of Intent/Irrevocable Purchase Order to be supported by BUYER’s Endorsement Letter/Bank Comfort Letter, effective as the date set forth below.

BUYER SIGNATURE:

Signature……………………………………………… Date: …………………………

Name:

Title:

Phone:

Email: