A purchase letter of intent is the written intention to purchase products or services from a vendor. The customer will make use of this letter to demonstrate their seriousness as a buyer and their motivation to transact business in the future. An acceptance deadline can be included by the buyer to limit the amount of time the vendor has to accept or decline the offer. Furthermore, if both the buyer and vendor agree, they may make this form legally binding, and thus more easily enforceable in court.
Types of “Purchase” Letter of Intents
Business Purchase Letter of Intent – To create a transactional arrangement between a buyer and seller for any type of business.
Real Estate Purchase Letter of Intent – Creates a binding or non-binding arrangement for the purchase of a commercial or residential property. A purchase agreement is commonly signed afterward.
Stock Purchase Letter of Intent – For the purchase of stock or shares in a business (corporation, LLC, partnership, etc.).
What is a Purchase Order?
A purchase order is sent from a buyer to a vendor to authorize the purchase of a product or service. Purchase orders will describe the type and quantity of the product or service requested along with the buyer’s account information for prompt delivery. In addition, the payment details included in a purchase order will help both parties keep an accurate account of spending or sales. Once a purchase order has been delivered, the vendor must approve of the transaction before the document becomes a legally binding contract.
Purchase Letter of Intent – Sample
PURCHASE LETTER OF INTENT
Effective Date: October 5, 2019
RE: Purchase of Industrial Lightbulbs
This purchase letter of intent (the “Letter of Intent”) represents the basic terms agreed upon by the Buyer and Seller. After this Letter of Intent has been made, a formal agreement may be constructed to the benefit of the Parties involved.
I. The Buyer: Mike Johnson (the “Buyer”).
II. The Seller: Industrial Lighting Supplies (the “Seller”).
III. The Product or Service: The Buyer intends to purchase 500 units of “A25 LED Lightbulbs” (the “Product”) at $5 per unit.
IV: Purchase Price: The subtotal for the Product is $2,500. The total Purchase Price after tax is $2,675.
V. Payment: The Purchase Price shall be paid in the following manner: Check (No. 27592).
VI. Financing: The Buyer has made it known that this Letter of Intent is conditional on their ability to obtain financing. If this letter is conditional on financing, it shall be under the following terms: The Buyer must obtain approval of a loan from his financial institution.
VII. Binding Effect: This Letter of Intent that shall be considered non-binding. Therefore, the parties acknowledge that this Letter of Intent is not enforceable by any Party. The terms outlined herein are solely for the purposes of reaching a later agreement in the future, of which, Buyer and Seller are not bound.
VIII. Currency: All mentions of money or the usage of the “$” icon shall be known as referring to the US Dollar.
IX. Governing Law: This Letter of Intent shall be governed under the laws by the State of Mississippi.
X. Acceptance: If you are agreeable to the aforementioned terms, please sign and return a duplicate copy of this Letter of Intent by no later than October 15, 2019.
SELLER
Seller’s Signature ______________________ Date ______________________
Print Name ______________________
BUYER
Buyer’s Signature ______________________ Date ______________________
Print Name ______________________