Document background
A Letter of Interest (LOI) is commonly used in Danish business transactions as an initial step in formalizing business negotiations. It serves as a structured way to express serious intent while maintaining flexibility before committing to detailed agreements. The document typically includes preliminary terms, proposed transaction structure, and any immediate binding provisions such as confidentiality or exclusivity. Under Danish law, while LOIs are generally non-binding, certain provisions can create legal obligations, making it essential to clearly distinguish between binding and non-binding elements. The document is particularly useful in complex transactions where parties need to demonstrate commitment before proceeding with due diligence or detailed negotiations. It helps establish the basic framework for negotiation while protecting both parties' interests under Danish legal requirements.
