Document background
The Letter of Intent for Business is a crucial preliminary document in Danish business transactions, used to formalize parties' intentions before entering into a definitive agreement. This document type is particularly relevant in Denmark's business environment, where it serves as a structured framework for negotiations while providing clarity on key terms and conditions. The LOI typically includes provisions for confidentiality, exclusivity, and basic commercial terms, while clearly stating which provisions are binding and non-binding. Under Danish law, while generally non-binding in nature, certain provisions of the Letter of Intent for Business may create legal obligations, particularly regarding good faith negotiations and confidentiality. It's commonly used in mergers and acquisitions, joint ventures, significant commercial contracts, and other complex business transactions where detailed negotiation and due diligence are required before finalizing a binding agreement.
