Document background
The Letter of Intent to Buy is a crucial preliminary document in Swiss business transactions, typically used when a potential buyer wishes to formally express their serious interest in purchasing a business, asset, or property. While not a binding purchase agreement, it serves to document the parties' intentions and establish key commercial terms under Swiss law. The document typically precedes detailed due diligence and final contract negotiations, outlining proposed purchase price, payment structure, exclusivity periods, and confidentiality obligations. Swiss law, particularly the Code of Obligations, provides the legal framework for this document, emphasizing principles of good faith in pre-contractual negotiations. The Letter of Intent to Buy helps parties establish clear expectations and timelines while maintaining flexibility for detailed negotiations in the final purchase agreement.
