Document background
A Letter Of Intent Manufacturing Agreement is commonly used in the initial stages of establishing a manufacturing relationship between parties, where detailed terms are yet to be finalized but there is a mutual interest in documenting preliminary understanding and commitment. This document, governed by Dutch law, serves as a roadmap for negotiations while providing certain binding provisions (typically confidentiality and exclusivity) during the negotiation period. It's particularly valuable when parties need to conduct due diligence, establish preliminary terms, or secure internal approvals before committing to a full manufacturing agreement. The document typically includes proposed manufacturing scope, quality standards, preliminary pricing structures, and timelines for concluding the definitive agreement, while clearly stating its non-binding nature for most provisions. It's essential for complex manufacturing arrangements where significant investment or preparation may be required before finalizing the full agreement.
