Document background
A Letter Of Intent Between Two Companies is a crucial preliminary document used in Danish business transactions to establish the framework for negotiations and future agreements. It serves as a stepping stone toward more detailed, definitive agreements while providing structure and clarity to the negotiation process. This document type is particularly relevant in the Danish business context, where it must comply with local legislation including the Danish Contracts Act and reflect the jurisdiction's emphasis on good faith in business dealings. The LOI typically outlines proposed terms, timelines, and any binding commitments, while clearly distinguishing between binding and non-binding provisions. It's commonly used in scenarios such as mergers and acquisitions, joint ventures, strategic partnerships, or significant commercial arrangements, providing a roadmap for due diligence and further negotiations while protecting both parties' interests under Danish law.
