The Business LOI serves as a fundamental legal instrument in Swiss commercial relationships, providing a structured framework for business arrangements between parties. This document type is particularly important when establishing formal business relationships under Swiss jurisdiction, whether between domestic entities or in cross-border arrangements involving Swiss parties. The Business LOI incorporates essential elements required by Swiss law, including detailed provisions on parties' rights and obligations, financial terms, liability limitations, and dispute resolution mechanisms. It is designed to comply with the Swiss Code of Obligations while providing flexibility to accommodate various business needs and sector-specific requirements. The document is commonly used in both domestic Swiss transactions and international business dealings where Swiss law is the chosen governing law.
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1. Parties: Identification of the contracting parties with full legal names, registration details, and addresses as per Swiss Commercial Register
2. Background: Context of the agreement and brief description of the parties' business relationship
3. Definitions: Key terms used throughout the agreement, defined in accordance with Swiss legal terminology
4. Object of Contract: Clear description of the contract's purpose and scope of services or business relationship
5. Rights and Obligations: Detailed description of each party's rights and responsibilities
6. Financial Terms: Payment terms, pricing, invoicing, and payment methods in compliance with Swiss financial regulations
7. Duration and Termination: Contract term, renewal conditions, and termination provisions
8. Liability and Warranties: Scope of liability, limitations, and warranties in accordance with Swiss law
9. Confidentiality: Obligations regarding confidential information and trade secrets
10. General Provisions: Standard legal clauses including force majeure, severability, and entire agreement
11. Applicable Law and Jurisdiction: Confirmation of Swiss law application and jurisdiction of Swiss courts
1. Intellectual Property Rights: Used when the contract involves IP creation, licensing, or transfer
2. Data Protection: Required when personal data processing is involved, ensuring compliance with Swiss Data Protection Act
3. Non-Competition: Include when parties need to restrict competitive activities
4. Insurance: Necessary when specific insurance coverage is required for the business relationship
5. Compliance with Laws: Important for regulated industries or international business relationships
6. Assignment and Subcontracting: Include when transfer of rights or subcontracting needs to be addressed
7. Force Majeure: Detailed provisions beyond standard clause when business is particularly susceptible to external disruptions
8. Audit Rights: Include when one party needs rights to audit the other's compliance or performance
1. Schedule 1 - Service Specifications: Detailed description of services or products to be provided
2. Schedule 2 - Pricing Schedule: Detailed pricing structure, rates, and payment terms
3. Schedule 3 - Service Levels: Performance metrics and service level requirements
4. Schedule 4 - Contact Details: Key contact persons and communication protocols
5. Schedule 5 - Data Processing Agreement: Required when personal data processing is involved
6. Appendix A - Technical Requirements: Technical specifications or requirements
7. Appendix B - Compliance Requirements: Specific regulatory or compliance requirements
8. Appendix C - Form Documents: Standard forms for notices, change requests, or other routine communications
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