Document background
The Non-Binding Purchase Agreement is a crucial preliminary document used in Danish commercial transactions where parties wish to document their intentions and proposed terms before entering into a binding commitment. It serves as a roadmap for negotiations and typically precedes more formal, binding agreements. This document is particularly valuable in complex transactions requiring extensive due diligence, detailed price negotiations, or regulatory approvals. While governed by Danish law and incorporating considerations from key legislation such as the Danish Contracts Act, it explicitly maintains its non-binding nature, allowing parties to withdraw from negotiations without legal consequences. The agreement typically includes proposed purchase terms, pricing structures, due diligence requirements, timelines, and confidentiality provisions, providing a comprehensive framework for moving towards a potential binding agreement while protecting both parties' interests during the negotiation phase.
