Document background
The Formal Demand Letter is a fundamental document in Swiss commercial practice, used when attempting to collect outstanding debts or enforce contractual obligations. It serves as a formal prerequisite to initiating debt collection proceedings under Swiss law, particularly under the Swiss Code of Obligations (OR) and the Swiss Debt Enforcement and Bankruptcy Act (SchKG). This document is typically employed after informal collection attempts have failed but before initiating formal legal proceedings. The letter must include specific information such as the exact amount owed, the basis for the claim, payment deadline, and consequences of non-payment. In Switzerland, a properly formatted Formal Demand Letter can have significant legal implications, potentially affecting the creditor's right to claim default interest and initiate enforcement proceedings.
