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Simple Letter Of Intent for Switzerland

Simple Letter Of Intent Template for Switzerland

A Letter of Intent under Swiss law serves as a preliminary written document outlining the main terms and conditions of a proposed transaction or business relationship between parties. Governed by Swiss contract law principles, particularly the Swiss Code of Obligations, this document articulates the parties' intentions while typically maintaining a non-binding nature except for specific provisions such as confidentiality and exclusivity. The document provides a framework for further negotiations and due diligence, reflecting the Swiss legal system's emphasis on good faith in business dealings and clear communication of commercial intentions.

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Simple Letter Of Intent

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What is a Simple Letter Of Intent?

The Simple Letter of Intent is a crucial preliminary document in Swiss business practice, typically used before entering into detailed negotiations or conducting due diligence for significant transactions. Under Swiss law, while generally non-binding in nature, it can create certain binding obligations particularly regarding confidentiality and good faith negotiations. The document is commonly used in contexts such as mergers and acquisitions, joint ventures, significant commercial contracts, or property transactions. It provides a structured framework outlining key terms, timelines, and conditions while allowing parties to maintain flexibility before committing to a definitive agreement. The Swiss legal framework, particularly through the Code of Obligations, provides clear guidelines on the enforceability and interpretation of such preliminary agreements, making them an effective tool for initiating business relationships while managing legal risks.

What sections should be included in a Simple Letter Of Intent?

1. Date and Parties: Full names and addresses of both sender and recipient

2. Subject Line: Clear identification of the proposed transaction or relationship

3. Introduction: Brief opening paragraph stating the purpose of the letter

4. Transaction Overview: High-level description of the proposed transaction or business relationship

5. Key Terms: Outline of the main commercial terms being proposed

6. Timeline: Proposed schedule for negotiations and completion

7. Non-Binding Nature: Clear statement that the LOI is non-binding except for specific provisions

8. Duration: Period for which the LOI remains valid

9. Signature Blocks: Space for signatures of authorized representatives

What sections are optional to include in a Simple Letter Of Intent?

1. Confidentiality: Binding provisions regarding the confidential treatment of shared information - include if sensitive information will be exchanged

2. Exclusivity: Binding provisions preventing negotiations with other parties - include if exclusive negotiations are desired

3. Costs and Expenses: Statement regarding who bears the costs of negotiations and due diligence - include if significant costs are anticipated

4. Due Diligence: Overview of the proposed due diligence process - include for M&A or significant investments

5. Governing Law: Specification of Swiss law as governing law - include if parties are from different jurisdictions

6. Break Fee: Provisions for compensation if one party terminates negotiations - include for significant transactions

7. Good Faith Obligation: Binding commitment to negotiate in good faith - include if parties want to create some level of commitment

What schedules should be included in a Simple Letter Of Intent?

1. Term Sheet: Detailed outline of key commercial terms being proposed

2. Timeline Schedule: Detailed timeline for the proposed transaction and negotiations

3. Contact List: List of key contacts and their roles for each party

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Switzerland

Document Type

Letter of Intent

Cost

Free to use
Relevant legal definitions




















Clauses




















Relevant Industries

Manufacturing

Technology

Real Estate

Financial Services

Healthcare

Retail

Energy

Telecommunications

Professional Services

Construction

Automotive

Pharmaceuticals

Logistics

Agriculture

Education

Media & Entertainment

Relevant Teams

Legal

Corporate Development

Business Development

Finance

Strategy

Commercial

Mergers & Acquisitions

Operations

Executive Leadership

Project Management

Procurement

Risk Management

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Chief Legal Officer

Managing Director

Business Development Director

Corporate Development Manager

Legal Counsel

Commercial Director

Investment Manager

Project Manager

Strategy Director

Mergers & Acquisitions Director

Partnership Manager

Contract Manager

Industries






Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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