Document background
A Letter of Intent For Supplier is commonly used in Danish business practice when companies wish to formalize their intention to enter into a supplier relationship while maintaining flexibility during negotiations. This document type is particularly relevant when dealing with significant supply arrangements that require detailed negotiation and due diligence before finalizing a full agreement. Under Danish law, while generally non-binding in nature, certain provisions of the LOI can be explicitly made binding, such as confidentiality and exclusivity clauses. The document typically includes preliminary commercial terms, timelines for negotiation, and framework for information exchange, while clearly delineating binding versus non-binding elements. It serves as a crucial tool in complex supplier negotiations, especially when dealing with strategic or high-value supply arrangements that require careful consideration and structured negotiation processes.
