Document background
The Non-Binding Letter of Intent (LOI) is a crucial preliminary document used in Danish business transactions to outline the fundamental understanding between parties before entering into detailed negotiations. This document type is particularly relevant when parties need to formally express their serious interest in a potential transaction while maintaining flexibility and avoiding premature legal commitments. The LOI serves as a roadmap for negotiations, typically including proposed terms, timelines, and process guidelines. Under Danish law, while the document is explicitly non-binding, it may contain certain binding provisions (such as confidentiality and exclusivity) if specifically stated. It's commonly used in mergers and acquisitions, joint ventures, significant commercial arrangements, and real estate transactions, providing a framework for due diligence and subsequent negotiations while protecting both parties' interests during the preliminary stages of a potential deal.
