Document background
The Pre-Contract Agreement is a crucial document used in Danish business transactions when parties are preparing to enter into significant negotiations but need to establish ground rules and protections before proceeding with detailed discussions. This document becomes particularly relevant in scenarios involving complex transactions, mergers and acquisitions, joint ventures, or strategic partnerships where substantial confidential information needs to be exchanged. Operating under Danish law, it provides legal certainty during the pre-contractual phase while protecting both parties' interests. The agreement typically outlines the scope of negotiations, confidentiality obligations, exclusivity terms if applicable, cost allocation, and the intended timeline for reaching a final agreement. While not binding in terms of the final transaction, the Pre-Contract Agreement creates legally enforceable obligations regarding the negotiation process itself.
