Document background
The Non-Binding Letter of Intent to Purchase Business is a crucial preliminary document used in Danish business acquisitions when a potential buyer wishes to formally express their interest in purchasing a business while maintaining flexibility in negotiations. It is typically used after initial discussions but before detailed due diligence and formal agreements. The document outlines key commercial terms, proposed structure, and timeline while clearly establishing its non-binding nature under Danish law. It serves multiple purposes: demonstrating serious intent, providing a framework for negotiations, outlining the scope of due diligence, and potentially securing exclusivity rights. While non-binding overall, certain provisions like confidentiality may be specifically made binding. This document must comply with Danish legal requirements and business practices, particularly the Danish Contracts Act, while being careful not to inadvertently create binding obligations.
