Letter of Intent Sample for Medical Supplies

LETTER OF INTENT: MEDICAL SUPPLY PROCUREMENT

DOCUMENT CONTROL

• Effective Date: [Date]
• Version: 1.0
• Jurisdiction: [State/Country]
• Scope: Purchase and Supply of Medical Grade Equipment/Consumables

1. OFFICIAL NOTICE & DISCLAIMER

This Letter of Intent ("LOI") is a non-binding statement of intent, except where expressly indicated as "Binding" under Section 6. This document does not constitute a final purchase agreement but serves as a framework for negotiations. The parties agree that no legal obligation shall arise until a formal, definitive Master Supply Agreement ("MSA") is executed by both parties.

2. IDENTIFICATION OF PARTIES

BUYER: [Full Legal Company Name], a [State] corporation, having its principal place of business at [Address] (“Buyer”).

SUPPLIER: [Full Legal Company Name], a [State] corporation, having its principal place of business at [Address] (“Supplier”).

3. SCOPE OF PROCUREMENT

Buyer intends to purchase, and Supplier intends to provide, the medical supplies listed in Exhibit A (the "Products").

• Specifications: All Products must meet the standards defined by [FDA/ISO/CE Certification No.].
• Quantity: [Quantity/Volume] to be delivered in [Frequency, e.g., monthly installments].

4. TERMS AND CONDITIONS

1. Pricing: Subject to the current market rate or fixed price of [Currency/Amount] per unit, inclusive/exclusive of taxes and freight.
2. Delivery Terms: Incoterms 2020: [e.g., DDP - Delivered Duty Paid] to [Delivery Location].
3. Quality Assurance: Supplier warrants that all Products delivered shall be free from defects in material and workmanship and compliant with all applicable healthcare regulatory requirements.
4. Exclusivity: This LOI grants the Buyer a period of [Number] days of exclusivity to negotiate the terms of the MSA.
5. Confidentiality: Both parties agree to maintain the strict confidentiality of the terms discussed herein, the pricing structure, and proprietary operational workflows.

5. GOVERNING LAW & BINDING NATURE

This LOI shall be governed by the laws of [Jurisdiction]. Section 4 (Confidentiality) and Section 5 (Governing Law) are legally binding obligations effective immediately upon signature. All other terms are subject to the finalization of the MSA.

6. EXECUTION

IN WITNESS WHEREOF, the authorized representatives of the parties have executed this Letter of Intent as of the date first written above.

FOR BUYER: Signature: __________________________ Name: [Printed Name] Title: [Title] Date: [Date]

FOR SUPPLIER: Signature: __________________________ Name: [Printed Name] Title: [Title] Date: [Date]

STEP-BY-STEP EXECUTION GUIDE

• Due Diligence Review: Before signing, verify the Supplier’s regulatory certifications (e.g., FDA registration, ISO 13485) against the specific items listed in Exhibit A to ensure legal compliance in your jurisdiction.
• Financial Terms Finalization: Use this LOI to outline the framework for payment (e.g., Net 30, Letter of Credit, or Escrow). Do not release funds until the definitive MSA is signed.
• Counsel Review: Forward this document to your legal department or external counsel to ensure that the "Governing Law" and "Dispute Resolution" clauses align with your corporate risk management policy.
• Transition to MSA: Establish a hard deadline (e.g., 30 days) in Section 4 to convert this LOI into a formal Master Supply Agreement; failure to do so should trigger an automatic expiration of the exclusivity clause.