Document background
The Preliminary Purchase Agreement is a crucial document used in Danish business transactions when parties need to formalize their initial understanding before proceeding with a full purchase agreement. It serves as a stepping stone in complex transactions, providing a structured framework for due diligence and detailed negotiations. This document type is particularly important under Danish law as it helps establish clear expectations and commitments while maintaining flexibility for the final agreement. The agreement typically includes provisions for exclusivity periods, confidentiality obligations, and conditions precedent that must be met before proceeding to the final purchase. It's commonly used in both asset and share purchases, real estate transactions, and business acquisitions, providing protection for both parties during the preliminary phase of the transaction.
