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Signing a Contract with a Danish Company

Signing a Contract with a Danish Company

It is a common practice among companies in European countries to cooperate and sign agreements which allows them to do business in a legal manner. Foreign companies are attracted by the possibility of cooperating with Danish businesses considering Denmark is one of the most advanced economies in Europe. From joint ventures to simple business to business (B2B) contracts, foreign entities can enter into agreements with local ones. Businesses to customer (B2C) agreements are also acknowledged by the Danish law.

Our contract lawyers in Denmark can assist companies and investors who wish to enter into different types of agreements. From non-disclosure agreement to employment contracts, our team can advise on the applicable contract laws, the manner in which agreements may be concluded we well as any applicable special provisions.

Business agreements in Denmark can be classified according to their scope. The types of contracts our lawyers can provide assistance with include the following:

  1. Partnership agreements: commonly signed by those who set up a general or limited partnership in Denmark;
  2. Nondisclosure agreements: signed between businesses and employees, independent contractors, suppliers, service providers for maintaining certain information confidential.
  3. Indemnity agreements: for businesses to be held harmless for burdens, losses or damages arising in certain situations.
  4. Employment contracts: signed between the employer and the employee, as per the current labor regulations in Denmark.
  5. Independent contractor agreements: set forth between a company and a seasonal worker or a project-based worker or partner company.
  6. Security agreements: holding an asset or property collateral to loans; our lawyers can also help with other sales-related agreements.

Foreign investors who want to open companies in this country can rely on the legal services provided by our law firm in Denmark. We will provide complete assistance for incorporation and our contract attorneys will be able to draw up agreements or consult on the ones that have already been drawn up, as needed for the business. 

In different cases, contracts signed by legal entities in Denmark can be classified according to their type. This may include the following:

  • • Simple contracts: any type of written agreement signed between two parties; can be legally binding without witnesses. 
  • • Bilateral agreements: when both parties in an agreement undertake to implement a certain measure or follow certain principles.
  • • Executory contracts: when the task expressed therein is performed at a later date, as required and as per the agreed terms.
  • • Express or implied: the express contracts can be based on terms initially set out orally; implied contracts are based with no expression, implied in fact or according to law.

Agreements are valid when they are enforceable in court when they express the legal obligations, the rights, and liabilities of the parties. Contracts are void when they are not enforceable in court or when the agreement is made under duress.

Legal protection under an agreement is possible under the Danish Contracts Act which defines the terms under which contracts may be concluded as well as the authority of agents, special and general provisions for signing agreements.

Our team of attorneys in Denmark briefly states the main provisions of the law below. Individuals who are interested in specific details or matters treated by this law can reach out to our agents for more detailed information about the applicable laws.

The Danish Contract Law

In order to sign an agreement with the Danish company, one must comply with the provisions of the Contracts Law. Issued in 1986 and last amended in 2011, the Danish Contracts Act includes information about the following issues:

  • –          the manner in which the offer is made and how it is to be accepted;
  • –          negotiations;
  • –          the appointment of agents who carry out negotiations and concluding the contracts on behalf of the parties;
  • –          the revocation of contracts;
  • –          the declaration of intentions;
  • –          the resolution of contractual disputes.

It should be noted that the Contracts Law contains special provisions related to consumer agreements. These are contracts signed between a seller/supplier and a business that acts as the consumer. When a seller or supplier negotiates an agreement on behalf of one of his parties, then this agreement shall also be treated as a consumer agreement. The consumer contracts law treats the following subjects: information requirements, right to cancel, right to terminate contracts, additional payments, choice of law agreements, commencement, sanctions and the mandatory nature of the Danish Consumer Contracts Act.

Our Danish lawyers can offer information on on the Danish Consumer Contracts Act as well as other relevant laws that are in place, as currently imposed by the Ministry of Justice.

The conclusion of contracts in Denmark

According to the law, at least two parties may enter a contract in Denmark. These parties can be individuals or companies, local or foreign. The first step is for one of the party to send an offer to the other followed by the acceptance of the offer. It is recommended for both the offer and the acceptance of the offer to be made in writing. Then the parties will agree on the content of the contract

In most cases where contracts with Danish companies are signed, negotiations are part of the process of concluding the agreement.  A less known fact about Denmark is that here the law also allows for the signing of agreements in the online environment. Both B2B and B2C Danish contracts can be concluded online. It is not uncommon to use an eSignature in Denmark. It has a general business use and it is court-admissible. Contracts are considered valid when the parties reach an agreement (verbally, physically or electronically) and for this purpose, they can also use electronic signatures, not only written ones.

The Danish Contracts Act does not regulate the manner in which agreements will be interpreted by the Danish courts. General principles will apply for this purpose, according to the expressed intentions of the parties and the implied terms as well as the terms that explicitly appear in the agreement. The relevant background law will also be used when the interpretation of a Dutch agreement is required.

The Contracts Act contains a special clause according to which dishonest contracts or unreasonable ones may be declared null and void. One of our attorneys can offer more information on the invalidity of certain types of agreements.  

The Danish Contract Law is generally based on the freedom of contracts and the law provides only for a general framework as per the regulations and the invalidity of such agreements.

For full information on the provisions of the Contracts Act, please feel free to contact us. Our lawyers in Denmark can also assist in drafting and vetting contracts.

Danish company owners can contact our accountants in Denmark whenever they are in need of fast and reliable accounting and bookkeeping solutions. We offer complete accounting services, starting with accounts receivable and payable management, bank account reconciliation, tax filing and payment, payroll, invoicing, tax advice and tax planning, VAT matters, and more.