Document background
A First Demand Letter is a crucial document in Swiss banking and commercial practice, used when a beneficiary wishes to call upon a bank guarantee or similar financial instrument. This document type is particularly relevant in situations where immediate payment is required without the need to prove default or breach by the principal debtor. The letter must comply with Swiss law, particularly the Swiss Code of Obligations and Federal Banking Act, and often incorporates international banking practices. It's commonly used in international trade, construction projects, and financial transactions where Swiss banks or Swiss law is involved. The document must contain specific elements including clear identification of the guarantee, precise demand amount, and proper authorization. First Demand Letters are designed to be unambiguous and self-contained, allowing for swift execution under Swiss legal framework.
