Document background
The LOI Purchase Order is commonly used in commercial transactions under English and Welsh law when parties need to proceed with a purchase while maintaining the flexibility to negotiate additional terms. This hybrid document provides the immediacy of a purchase order with the strategic benefits of a letter of intent. A LOI Purchase Order typically includes specific details about the goods or services, pricing, delivery terms, and payment conditions, while indicating the parties' intention to potentially formalize a more comprehensive agreement later. It's particularly useful in time-sensitive situations or when parties want to commence a transaction while leaving room for future negotiations.
