Document background
The Non-Binding Letter of Intent to Purchase Product is a preliminary document used in commercial transactions where one party wishes to formally express their interest in purchasing products from another party, while maintaining flexibility before final commitment. This document type is particularly relevant in the Danish business context, where it operates under Danish contract law principles. It is typically used when parties want to document their preliminary understanding and set expectations for future negotiations, while explicitly preserving their right to withdraw. The document outlines key commercial terms, product specifications, and potential timelines, serving as a stepping stone toward a binding purchase agreement. While non-binding, it demonstrates serious intent and often helps secure resources and attention from both parties for detailed negotiations. The letter usually precedes more detailed due diligence and the drafting of binding purchase agreements.
