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A Letter Of Intent Procurement is a crucial preliminary document used in Swiss business practice when parties are preparing to enter into a significant procurement relationship but need to formalize their intentions and basic terms before completing full negotiations. It serves as a roadmap for subsequent detailed agreements while potentially creating certain binding obligations under Swiss law. This document type is particularly relevant when the procurement involves substantial value, complexity, or requires extensive due diligence. The Swiss legal framework, particularly through the Code of Obligations, may interpret certain provisions as binding even in preliminary documents, making it essential to clearly distinguish between binding and non-binding elements. Typically used in complex procurement scenarios, cross-border transactions, or when significant pre-contractual discussions are necessary.

1. Date and Parties: Full legal names and addresses of both parties

2. Introduction: Brief opening paragraph stating this is a Letter of Intent regarding procurement

3. Background/Recitals: Context of the proposed procurement relationship and current status of discussions

4. Purpose: Clear statement of the intention to enter into a procurement relationship and scope of proposed arrangement

5. Key Commercial Terms: Outline of principal terms including nature of goods/services, estimated volumes, and indicative pricing structure

6. Timeline: Proposed schedule for negotiation, due diligence, and execution of definitive agreements

7. Exclusivity: If applicable, period during which parties agree not to negotiate with others

8. Confidentiality: Basic confidentiality obligations regarding negotiations and shared information

9. Binding/Non-binding Nature: Clear statement of which provisions are binding and non-binding

10. Costs and Expenses: Statement regarding who bears costs of negotiations and LOI preparation

11. Duration and Termination: Validity period of the LOI and termination rights

12. Governing Law: Specification of Swiss law as governing law

13. Signatures: Execution blocks for both parties