Document background
The Conditional Letter of Intent is a crucial document in Swiss business transactions where parties need to formalize their preliminary understanding while maintaining specific conditions precedent to a final agreement. This document type is particularly valuable in complex commercial transactions such as mergers and acquisitions, joint ventures, real estate developments, and significant business collaborations. Under Swiss law, the Conditional Letter of Intent serves as a structured framework that outlines key commercial terms, conditions precedent, and the scope of binding versus non-binding provisions. It provides protection under the Swiss Code of Obligations while maintaining flexibility for further negotiations. The document typically includes provisions for exclusivity, confidentiality, due diligence processes, and specific conditions that must be met before proceeding to definitive agreements.
