Document background
The Commercial Letter of Intent (LOI) is a crucial preliminary document used in Danish business transactions to establish the framework for complex commercial negotiations. It serves as a roadmap for future discussions while providing structure and clarity to the negotiation process. While governed by Danish law and incorporating EU regulatory considerations, the LOI typically maintains a non-binding nature except for specific provisions such as confidentiality and exclusivity. This document is particularly valuable in situations involving mergers and acquisitions, joint ventures, significant commercial partnerships, or other substantial business arrangements where parties need to document their serious intention to proceed while retaining flexibility for detailed negotiations. The LOI helps prevent misunderstandings by documenting key terms and expectations early in the process, while also potentially facilitating access to financing or regulatory approvals by demonstrating the serious nature of the proposed transaction.
