Document background
The Letter of Intent (LOI) is a crucial preliminary document used in Danish business transactions to establish the framework for complex negotiations and potential deals. Governed by Danish law, an LOI typically precedes more detailed agreements and is particularly valuable in mergers and acquisitions, joint ventures, real estate transactions, and significant commercial arrangements. While predominantly non-binding, certain provisions such as confidentiality, exclusivity, and costs may be specifically made binding. The LOI serves to document the parties' serious intent to pursue a transaction, outline key commercial terms, and establish the groundwork for due diligence and detailed negotiations. It provides a structured approach to complex transactions while maintaining flexibility for final terms.
