Document background
The Business Purchase and Sale Agreement is a crucial document used in Danish business transactions to formalize and execute the transfer of business ownership. It serves as the primary contract when acquiring or divesting a business, whether through an asset or share purchase structure. This document is essential under Danish law as it captures all material terms of the transaction, including purchase price, payment mechanisms, warranties, indemnities, and specific provisions required by Danish corporate, employment, and tax legislation. The agreement typically results from extensive negotiations and due diligence, incorporating necessary protections for both parties while ensuring compliance with Danish regulatory requirements. It's particularly important as it forms the basis for the transfer of ownership and allocation of risks between parties, while addressing specific Danish legal requirements such as employee transfer provisions under the Virksomhedsoverdragelsesloven.
