Document background
The Letter Of Intent Sales is a crucial preliminary document used in Indian business transactions to establish the framework for a potential sales arrangement before executing a definitive agreement. It is particularly valuable when parties need to demonstrate serious intent while maintaining flexibility for negotiations. This document typically includes key commercial terms, proposed timelines, and any conditions precedent, while operating within the Indian legal framework, particularly under the Indian Contract Act, 1872, and the Sale of Goods Act, 1930. While generally non-binding in nature (except for specific provisions like confidentiality), it serves as a roadmap for negotiation and due diligence processes, often used in significant commercial transactions where parties need to outline their understanding before committing to a final agreement.
