Document background
The Guarantee Promissory Note is commonly used in Swiss commercial and financial transactions where parties seek to combine the security of a guarantee with the negotiability and enforcement advantages of a promissory note. This document type is particularly valuable in situations requiring both payment security and potential transferability of the payment obligation. Under Swiss law, the instrument must comply with the formal requirements set forth in the Swiss Code of Obligations and the Geneva Convention, making it a robust tool for securing financial obligations. The document includes essential elements such as party identification, payment terms, due dates, and reference to the underlying obligation being guaranteed. A Guarantee Promissory Note is frequently used in commercial lending, international trade, and various business transactions where enhanced payment security is required.
