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Preliminary Sale Agreement Template for Denmark

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Key Requirements PROMPT example:

Preliminary Sale Agreement

I need a Preliminary Sale Agreement for the purchase of a commercial property in Copenhagen, with a 60-day due diligence period starting March 1, 2025, and including specific provisions for environmental assessment and tenant rights review.

What is a Preliminary Sale Agreement?

The Preliminary Sale Agreement is a crucial document used in Danish business and legal practice when parties wish to formalize their initial understanding and commitment to a potential sale transaction while maintaining flexibility for further negotiation and due diligence. This document type is particularly relevant in complex transactions where detailed investigation of the sale object is required before finalizing the deal. The agreement typically includes provisions for exclusivity, preliminary price determination, due diligence processes, and conditions for proceeding to final sale. Under Danish law, while the Preliminary Sale Agreement creates binding obligations regarding the negotiation process and certain key terms, it is distinct from the final sale agreement and allows parties to address contingencies and establish clear parameters for moving forward with the transaction. It serves as a critical risk management tool by setting clear expectations and protecting both parties' interests during the pre-completion phase.

What sections should be included in a Preliminary Sale Agreement?

1. Parties: Identification and details of the seller and buyer, including full legal names, registration numbers (if companies), and addresses

2. Background: Context of the transaction, including brief description of the subject matter of the sale and parties' intentions

3. Definitions: Key terms used throughout the agreement, ensuring consistent interpretation

4. Subject Matter of Sale: Detailed description of what is being sold, including any specific inclusions or exclusions

5. Purchase Price and Payment Terms: Preliminary agreement on price, payment structure, and any deposits required

6. Due Diligence: Terms and conditions for the buyer's investigation of the sale object, including timeframes and access rights

7. Conditions Precedent: Conditions that must be satisfied before proceeding to the final sale agreement

8. Timeline and Process: Key dates and milestones for the transaction, including deadline for final agreement

9. Exclusivity: Seller's commitment not to negotiate with other potential buyers during the specified period

10. Confidentiality: Obligations regarding confidential information exchanged during the preliminary phase

11. Costs: Allocation of costs and expenses during the preliminary phase

12. Termination: Circumstances under which either party may terminate the preliminary agreement

13. Governing Law and Jurisdiction: Confirmation of Danish law as governing law and jurisdiction for disputes

14. Signatures: Execution block for all parties

What sections are optional to include in a Preliminary Sale Agreement?

1. Regulatory Approvals: Required when the transaction needs specific regulatory clearances before proceeding to final sale

2. Financing Conditions: Included when the buyer's obligation is contingent on obtaining specific financing

3. Property Inspection: Specific terms for physical inspection when dealing with real estate or substantial physical assets

4. Employee Matters: Required when the sale involves transfer of employees or labor law considerations

5. Intellectual Property: Needed when the sale includes IP rights that require special treatment or verification

6. Environmental Matters: Important when the sale involves assets with potential environmental liabilities

7. Break Fee: Terms for compensation if either party backs out under specific circumstances

8. Interim Operation: Guidelines for operation of the business/maintenance of assets during the preliminary period

What schedules should be included in a Preliminary Sale Agreement?

1. Schedule 1 - Description of Sale Object: Detailed technical or legal description of what is being sold

2. Schedule 2 - Preliminary Price Calculation: Detailed breakdown of the preliminary purchase price components

3. Schedule 3 - Due Diligence Requirements: List of documents and information to be provided during due diligence

4. Schedule 4 - Timeline: Detailed timeline with all relevant dates and deadlines

5. Schedule 5 - Required Approvals: List of necessary regulatory or third-party approvals

6. Appendix A - Form of Final Sale Agreement: Draft or key terms of the contemplated final sale agreement

7. Appendix B - Due Diligence Access Protocol: Procedures and rules for conducting due diligence

8. Appendix C - Confidentiality Terms: Detailed confidentiality obligations and procedures

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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Relevant Industries

Real Estate

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