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Advisory Engagement Letter

Advisory Engagement Letter Template for Denmark

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Advisory Engagement Letter

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Document background
The Advisory Engagement Letter is a fundamental document used in professional services relationships under Danish law. It serves as the primary agreement between professional advisors and their clients, setting out the terms under which advisory services will be provided. This document is essential when establishing any formal advisory relationship in Denmark, whether for management consulting, financial advisory, strategic planning, or other professional services. The letter typically includes detailed scope of services, fee arrangements, confidentiality provisions, and liability terms, all aligned with Danish legal requirements and business practices. It's particularly important for ensuring compliance with Danish contract law, professional services regulations, and EU data protection requirements. The Advisory Engagement Letter should be customized based on the specific nature of services while maintaining compliance with Danish legal frameworks and professional standards.
Suggested Sections

1. Letter Header and Date: Formal business letter header including advisor's details and date

2. Client Details: Full legal name and address of the client

3. Introduction: Opening paragraph identifying the parties and confirming the intention to provide advisory services

4. Engagement Scope: Detailed description of the advisory services to be provided, including any specific objectives or deliverables

5. Term and Timing: Duration of the engagement and any key milestone dates

6. Fees and Payment Terms: Detail of fees, billing arrangements, and payment terms

7. Advisor's Obligations: Key responsibilities and commitments of the advisor

8. Client's Obligations: Required cooperation and inputs from the client

9. Confidentiality: Confidentiality obligations and handling of sensitive information

10. Data Protection: GDPR compliance and data handling procedures

11. Limitation of Liability: Scope of advisor's liability and any limitations under Danish law

12. Termination Provisions: Conditions and process for ending the engagement

13. Acceptance: Signature blocks and acceptance terms

Optional Sections

1. Regulatory Compliance: Required when providing regulated advisory services, including relevant regulatory disclaimers and compliance statements

2. Intellectual Property: Include when the advisory services involve creation of specific materials or methodologies

3. Team Structure: Add when engagement involves multiple advisors or team members

4. Conflict of Interest: Include when there are potential conflicts to disclose

5. Insurance Coverage: Add when professional indemnity insurance details need to be specified

6. Sub-contractors: Include when external experts or sub-contractors may be involved

7. Travel and Expenses: Add when significant travel or additional expenses are anticipated

8. Force Majeure: Include when long-term or critical advisory services are involved

Suggested Schedules

1. Schedule of Services: Detailed breakdown of specific advisory services and deliverables

2. Fee Schedule: Detailed fee structure, rates, and payment milestones

3. Team Profiles: CVs or profiles of key team members providing the advisory services

4. Data Processing Agreement: Required under GDPR when processing personal data

5. Service Level Agreement: When specific performance metrics or service levels are agreed

6. Compliance Requirements: Any specific regulatory or compliance requirements applicable to the engagement

Authors

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Relevant Industries
Relevant Teams
Relevant Roles
Industries
Danish Contracts Act (Aftaleloven): The fundamental law governing contract formation, validity, and enforcement in Denmark. Essential for establishing the basic framework of the advisory engagement agreement.
Danish Marketing Practices Act (Markedsføringsloven): Regulates business-to-business relationships and marketing practices, including requirements for fair and transparent business conduct in professional services.
Danish Financial Business Act (Lov om finansiel virksomhed): If the advisory services relate to financial matters, this law sets out requirements for financial advisors and their obligations.
Danish General Data Protection Act (Databeskyttelsesloven): Implementation of GDPR in Danish law, crucial for handling client data in advisory relationships.
Danish Act on Services in the Internal Market (Lov om tjenesteydelser i det indre marked): Regulates service provision and sets requirements for professional service providers, including disclosure obligations.
Danish Liability and Compensation Act (Erstatningsansvarsloven): Governs professional liability and compensation rules, important for defining liability limitations and professional indemnity provisions.
Danish Money Laundering Act (Hvidvaskloven): If providing certain types of business advisory services, compliance with anti-money laundering regulations may be required.
Danish Executive Order on Good Business Practice (Bekendtgørelse om god skik): Sets standards for professional conduct and fair business practices in service relationships.
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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