Document background
The Letter of Intent to Purchase Goods is a crucial preliminary document used in Danish commercial transactions when parties wish to formalize their intentions regarding a proposed purchase of goods before entering into a definitive agreement. This document type is particularly valuable in complex or high-value transactions where parties need to establish clear parameters for negotiation and demonstrate their commitment to the process. While primarily governed by Danish law, including the Danish Contracts Act and Sale of Goods Act, it may also incorporate international commercial principles when involving cross-border transactions. The LOI typically outlines key commercial terms, timeline, and any binding obligations (such as confidentiality and exclusivity), while maintaining flexibility for detailed negotiations. It serves as a strategic tool in commercial negotiations, helping parties align their expectations and identify potential issues early in the transaction process.
