Document background
The Letter of Intent For A Project is a crucial preliminary document used in Danish business practice when parties are preparing to embark on a significant project together but have not yet finalized all details for a definitive agreement. This document type is particularly important under Danish law, where LOIs can create binding obligations and therefore require careful drafting to distinguish between binding and non-binding provisions. It typically precedes more detailed agreements and is used when parties need to formalize their serious intention to proceed with a project while still negotiating specific terms. The document serves multiple purposes: it outlines the project scope, establishes a framework for negotiations, sets timelines, and often includes binding provisions regarding confidentiality and exclusivity. It's particularly relevant in complex projects where detailed due diligence or regulatory approvals are required before proceeding to final agreements.
