Erhvervsmøde

Commercial Contracts - doing business in Denmark

In Denmark, there is a vast background legislation which “fills the gaps” in contracts. Therefore, contracts involving a Danish party is often quite short. As a foreign company, you really need to know what applies when you omit to regulate certain aspects in the contract. Read between the lines here.

Why is it important?

Businesses operating in the international market are facing various challenges. Globalisation, international transactions, increased competitiveness and technological evolution make today’s commercial relationships more complex. Therefore, it is of essence that businesses plan their commercial strategy and ensure reliable as well as durable commercial relationships through commercial contracts.

In Denmark, contracts are governed by the principle of freedom of contract. As a rule, Danish contracts do not require a specific form or content, and the contracting parties are free to agree on the terms and conditions of the contract. However, these agreements may not conflict with the rights of a third person or other regulations, such as competition law or rules regulating specific types of businesses. 

Denmark is based on the civil law doctrine, with a large “background legislation” filling in the legal gaps where contracting parties have not made specific provisions in their contracts. Therefore  contracts in Denmark are often shorter than in other countries, as the parties often omit to regulate certain aspects, as both parties know and accept the before-mentioned background legislation which  applies in case of a dispute. To summarise – as a non-Danish party entering into agreements in Denmark you will need an understanding of the basic Danish contract legislation and principles – this is where we at R&R International can help.

What can we do to help you?

We at R&R International believe that our knowledge of the applicable laws and their practical effects on your investments in Denmark is essential when you plan your commercial strategy involving activities in Denmark. We are a professional legal team well experienced in international commercial law and commercial contracts.

How can we assist you?

We can help you with the following:

  • International sales
  • Agency
  • Distributorship
  • Franchising
  • Long-term agreements
  • Alternative Dispute Resolution methods (ADR)
  • Incoterms
  • IT-contracts
  • E-commerce

For more on Danish legislation and principles on agreements and trade, please read the following articles.

Access to the Danish market via Agency-, Distribution- and Franchising agreements

When a non-Danish company intends to sell goods or services in Denmark, there are many options when it comes to deciding on the best method of accessing the Danish market.

Read the article here
What you should know when entering into a commercial contract with a Danish business partner

As a rule, Denmark has a high degree of contractual freedom, which makes Denmark a liberal venue for entering into commercial relationships.

There are however, some exceptions to the general rule - depending on the nature of the contractual relationship; some rules cannot be derogated from. 

Read the article
How to start a business in Denmark
Business incorporation in Denmark is usually an easy and quick procedure, as it can be done online through the Danish Business Authority’s (DBA) website (www.virk.dk). However, all the required documents for incorporation (e.g. business definition, Articles of association, Incorporation document, tax registration, eventual operation permits, etc.) need to be in place prior to registration to DBA.
Read the article here