Document background
The Payment Terms Agreement is essential for businesses operating under Danish jurisdiction that need to establish clear, legally compliant payment arrangements. This document is particularly relevant when parties seek to formalize their payment relationship, whether for ongoing business transactions, regular supply arrangements, or service delivery. It incorporates requirements from Danish commercial law, including the Danish Act on Late Payment in Commercial Transactions, and addresses crucial aspects such as payment deadlines, invoice requirements, late payment interest, and dispute resolution procedures. The agreement is designed to provide certainty and protection for both parties while ensuring compliance with Danish legal requirements and business practices. It's commonly used in business-to-business relationships where regular payments are involved and can be customized to accommodate specific payment terms, electronic invoicing requirements, and industry-specific needs.
