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Agreements between companies

When a company makes and agreement with another company they can make nearly whatever agreement they like to do.

If two business identities in good spirit decide to make and an agreement they are free to do so, also without the interference of and lawyer.

Though there is a few laws you must follow:

Different kinds of agreements

Købeloven (The Sale of Goods Act ), funktionærloven (The Salaried Employees Act), lejeloven (Rent Act) and a few others are laws which companies always must follow.

  • Sale of Goods Act regulates the rules you must follow when selling to private individuals / consumers
  • Salaried Employees Act regulates the rules you must follow when you have employees salaried
  • The Rent Act regulates what you are allowed as a landlord of premises and property.
  • E-commerce Act and the Consumer Contracts Act regulate the sale of goods and services on the web.

Agreements between two companies

If you conclude an agreement with another company for cooperation within the sale of services or other issues you should prepare a written agreement. Describe in the agreement as clearly as possible what you are cooperating about.
Describe in the agreement e.g.:

  • Who are the parties to the agreement - remember CVR no.
  • Purpose of the Agreement
  • The agreement includes the following areas ..
  • Delivery - where and when?
  • Payment - how much and when?
  • Definitions - do you understand the same by the agreement?
  • Special conditions you have to meet
  • Warranty - how long and how much is covered?
  • Confidentiality and non-competition clause
  • Rights - who has rights to what?
  • Safety - insurance and contract payment
  • Provisions for default
  • Agreement start and end
  • Conflict resolution - if it goes wrong, then what?
  • Annex - drawings and other descriptions
  • Signatures certifying Agreement

Agreement without lawyer

You do not have to involve a lawyer to draw up the agreement to make it legally binding. Either both companies´ signature or an email from both companies confirming the content of the agreement is sufficient.

For complicated agreements, it is an advantage to involve a lawyer for advice. The lawyer can ensure that all areas are covered, and perhaps the lawyer´s interference ensures greater respect for the agreement from both parties.

Oral Agreements

An oral agreement is a valid contract - if it can be proven. Have you agreed on something orally with a partner so hurry up and write it down and send an email to make sure that you have understood the oral agreement in the same way.

If an oral agreement must be enforceable it should be confirmed in writing.

Never interrupt your enemy when he is making a mistake.
- Napoleon Bonaparte


Related articles:
Related articles:
Agreements between companies
Terms of Sale and Delivery
Insurances in the company
Private limited Company - Anpartsselskab - ApS
Other subjects:
Bookkeeping and accounting
The person behind the business
Help to marketing and sales
The law and your business
Focus on revenue
Hiring staff