Document background
An Asset Purchase Agreement Term Sheet is a crucial preliminary document used in Danish business transactions when parties are considering the purchase and sale of business assets. This document typically precedes the full Asset Purchase Agreement and is used to memorialize the parties' initial understanding of key commercial and legal terms. It serves as a roadmap for further negotiations and the preparation of definitive documentation, while typically maintaining non-binding status except for specific provisions. The term sheet helps streamline the negotiation process by identifying and addressing major deal points early, facilitating efficient due diligence, and reducing the time and cost of preparing final documentation. Under Danish law, while most provisions are non-binding, certain aspects such as confidentiality and exclusivity obligations may create legally binding commitments.
