Document background
The Head of Terms Agreement is a crucial preliminary document used in Danish business transactions to establish the fundamental framework for complex commercial arrangements. It is particularly valuable when parties need to document their initial understanding before committing to detailed due diligence and full contractual documentation. This document type is commonly used in mergers and acquisitions, joint ventures, significant commercial contracts, and investment transactions under Danish law. While predominantly non-binding, except for specific provisions like confidentiality and exclusivity, it serves as a valuable tool for aligning parties' expectations and objectives early in the negotiation process. The document typically includes key commercial terms, timelines, conditions precedent, and basic binding obligations, all structured in accordance with Danish legal principles and business practices.
