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The Guarantee Letter is a crucial financial instrument in Swiss commercial practice, commonly used to provide security for various business obligations. It represents an independent commitment by the guarantor (usually a bank) to pay a specified amount to the beneficiary upon specified conditions. Under Swiss law, guarantees must be carefully distinguished from suretyships (Bürgschaft), as they have different legal implications and formal requirements. The document is particularly relevant in international trade, construction projects, and complex commercial transactions where parties seek secure payment mechanisms. The Guarantee Letter typically includes specific details about the underlying transaction, guarantee amount, validity period, and conditions for payment, all structured to comply with Swiss legal requirements and banking practices.

1. Letter Header: Date, reference number, and formal letterhead of the guarantor (typically a bank or financial institution)

2. Addressee Details: Full name and address of the beneficiary of the guarantee

3. Guarantee Reference: Clear identification of the underlying transaction or obligation being guaranteed

4. Principal Identification: Identity of the principal party whose obligations are being guaranteed

5. Guarantee Amount: The maximum amount covered by the guarantee, clearly stated in numbers and words

6. Guarantee Scope: Precise description of what obligations are covered by the guarantee

7. Duration and Expiry: Clear statement of when the guarantee becomes effective and when it expires

8. Demand Requirements: Specific conditions and process for making a claim under the guarantee

9. Governing Law Declaration: Express statement that the guarantee is governed by Swiss law

10. Signature Block: Authorized signatures of the guarantor with proper authentication as required by Swiss law