Document background
The LOI Contract serves as a crucial preliminary document in commercial transactions under Danish law, typically used when parties are contemplating significant business arrangements such as mergers, acquisitions, joint ventures, or major commercial partnerships. It sets out the framework for negotiations while providing certain binding commitments, particularly regarding confidentiality and exclusivity. The document reflects Danish legal principles, including the emphasis on good faith negotiations and fair dealing, while accommodating international business practices. LOIs are particularly valuable in complex transactions where parties need to outline their intentions and establish ground rules before committing to full due diligence or detailed negotiations. The document typically precedes more comprehensive agreements and helps parties align their expectations while maintaining legal certainty on key aspects.
