Document background
The Non-Binding Contract is a crucial document in Swiss business practice, commonly used during the preliminary stages of business relationships or complex transactions. It serves as a formal way to document parties' intentions and understandings without creating legally binding obligations. This document type is particularly valuable in situations where parties need to outline their proposed collaboration, document preliminary agreements, or set the framework for future negotiations while maintaining flexibility. Under Swiss law, while the main provisions remain non-binding, certain elements like confidentiality clauses can be specifically designated as binding. The document typically includes detailed information about the proposed relationship, timelines, and next steps, while clearly stating its non-binding nature to avoid any confusion about legal enforceability. It's especially useful in complex business transactions, joint ventures, or strategic partnerships where parties need to document their discussions before proceeding to formal, binding agreements.
