Document background
The Letter of Intent to Purchase is a crucial preliminary document in Danish business transactions, typically used when a potential buyer wishes to formally express their serious intention to purchase assets, property, or a business. This document, while primarily non-binding, sets out the fundamental terms and conditions that will guide the transaction and subsequent negotiations. It is particularly valuable in complex transactions where detailed due diligence is required and where parties need to establish clear parameters before investing significant time and resources. Under Danish law, the Letter of Intent to Purchase provides a structured framework for negotiations while offering certain binding elements (such as confidentiality and exclusivity provisions) to protect both parties' interests during the negotiation phase. It serves as a roadmap for the transaction, outlining key commercial terms, timelines, and conditions precedent to closing.
