Document background
The LOI Purchase Order is a crucial document in Danish commercial transactions, serving as a bridge between initial negotiations and final purchase agreements. This document type is particularly useful when parties need to formalize their intentions and outline key commercial terms before committing to a binding purchase order. Governed by Danish law, including the Købeloven and relevant EU regulations, it typically includes essential elements such as product specifications, pricing, delivery terms, and any conditions that need to be met before proceeding with the final purchase. While maintaining its generally non-binding nature, certain provisions like confidentiality and exclusivity can be made explicitly binding. The LOI Purchase Order is particularly valuable in complex transactions where due diligence or regulatory approvals are required, or when parties need to demonstrate serious intent while maintaining flexibility for final negotiations.
