Letter of Intent
Irrevocable Purchase Order
LOI (Letter of Intent)/ICPO (Irrevocable Purchase Order)
An LOI (Letter of Intent) is not a contract. Letters of intent serve to notify the seller that the buyer wishes to enter into negotiations to purchase. They do not contractually oblige either the buyer or the seller to go through with the trade.
Letters of intent should be regarded only as an opening point. Issuing an LOI does not make the buyer culpable for anything written in it. Until a contract is agreed upon and signed, both parties are free to back out of negotiations at any time, and buyers cannot be held liable for statements made in the LOI.
Banking information is usually not sent with a LOI, with the exception that Buyer and Seller had already direct contact and the data is only sent to trusted parties. An ICPO is a more detailed form of an LOI and shall always be addressed directly to the Seller or his representative and shall contain full bank data to get into the contract phase.
Both documents shall be signed by the signatory of the company issuing it. If it arrives without any signature or in form of an email not on company letterheads we just delete it. It is 99% fraud or scam.
We only accept LOIs or ICPOs addressed correctly to us and with signature of the responsible person which will sign the contracts. We will only talk to him directly unless he names a representative contact we can talk to.
Each LOI or ICPO will be verfied by us with the Buyer by email or phone. Without the Buyer confirming this we will not move.