Document background
The Debt Payment Agreement is a crucial legal instrument used in Swiss business and personal financial transactions to formalize debt repayment arrangements. This document is particularly relevant when parties need to establish clear, legally binding terms for the settlement of existing debts, whether arising from loans, unpaid services, or other financial obligations. Under Swiss law, particularly the Code of Obligations, such agreements must include specific elements to be enforceable, including clear identification of parties, precise debt amount, payment terms, and applicable interest rates. The document is commonly used in debt restructuring, business transactions, and personal financial arrangements, providing both parties with legal certainty and clear recourse in case of default.
