Document background
The LOI Purchase Order is a specialized document commonly used in Hong Kong commercial transactions when parties need to formalize their purchasing intentions while maintaining some flexibility in the final terms. This document type is particularly valuable in situations where there is a need to demonstrate serious commitment to a purchase while certain details are still being finalized. The LOI Purchase Order typically includes specific details about the goods or services to be purchased, pricing structures, delivery terms, and any conditions that need to be met before the final purchase. It's especially useful in complex transactions, large-scale purchases, or situations where there might be a significant lead time between the initial commitment and the final delivery. Under Hong Kong law, certain provisions of the LOI Purchase Order can be made binding (such as confidentiality and exclusivity) while keeping other commercial terms open for final negotiation. This approach provides both parties with a clear framework for proceeding with the transaction while maintaining necessary commercial flexibility.
