Document background
A Letter Of Intent To Purchase Scrap Metal is commonly used in Indian business transactions as a preliminary step before entering into a formal purchase agreement. This document is particularly important in India's growing metal recycling sector, where it helps parties establish clear intentions and basic terms while complying with various regulatory requirements, including those from the Metal Scrap Trade Corporation Limited (MSTC) and environmental authorities. The letter typically includes proposed quantity, quality specifications, price ranges, and timeline for the transaction, while also addressing any specific compliance requirements under Indian law. It's especially useful in larger transactions where due diligence and detailed negotiations are necessary before finalizing the purchase, providing a structured framework for these discussions while maintaining flexibility for final terms.
