Document background
The Letter of Reservation serves as a preliminary agreement under Danish law, commonly used when a party wishes to secure temporary exclusive rights to purchase or acquire specific assets, properties, or services. This document type is particularly valuable in situations where immediate completion of a transaction is not possible or desired, but parties wish to formalize their intent and secure their rights. The Letter of Reservation typically includes identification of parties, description of the reserved item, reservation period, financial terms, and any conditions that must be met. It's especially common in real estate transactions but is also used across various commercial sectors in Denmark. The document must comply with Danish contract law (Aftaleloven) and any sector-specific regulations, while providing clear terms for both parties regarding their rights and obligations during the reservation period.
