Document background
The Intent To Purchase Letter is a crucial preliminary document used in Danish commercial transactions when a potential buyer wishes to formally express their serious interest in acquiring assets, property, or a business. It serves multiple purposes: documenting the basic terms of the proposed transaction, establishing a framework for negotiations, and setting expectations for due diligence and timeline. While governed by Danish law, which generally views such letters as non-binding unless specifically stated otherwise, the document often contains certain binding provisions such as confidentiality and exclusivity clauses. It's particularly valuable in complex transactions where parties need to outline their understanding before investing significant resources in due diligence and detailed negotiations. The document typically precedes more detailed agreements and helps secure preliminary commitments from stakeholders and potential financiers.
