Document background
A Pre Sale Agreement is utilized when parties have reached preliminary agreement on a sale transaction but require a formal framework before proceeding to the final sale agreement. This document is particularly relevant in complex transactions where due diligence is required, or where certain conditions need to be met before the sale can be completed. Under Danish law, it creates binding obligations while allowing flexibility for the parties to address contingencies and establish clear parameters for moving forward. The agreement typically includes essential terms such as purchase price, payment structure, conditions precedent, due diligence rights, and timeline for completion, while ensuring compliance with Danish legal requirements including the Sale of Goods Act, Contracts Act, and where applicable, specific sector regulations.
