Document background
The Non-Refundable Deposit Agreement serves as a crucial document in various commercial transactions under Swiss law, where one party needs to demonstrate commitment through a monetary deposit that will not be returned under specified circumstances. This type of agreement is commonly used in real estate transactions, major equipment purchases, or as part of larger commercial deals where parties need security for their commitments. The document typically includes detailed provisions about the deposit amount, payment mechanics, explicit acknowledgment of its non-refundable nature, and the relationship to the underlying transaction. Swiss law provides a specific framework for such agreements through the Code of Obligations, particularly regarding earnest money (Draufgeld) provisions and the principle of good faith in commercial dealings. The agreement must carefully balance the interests of both parties while ensuring compliance with Swiss consumer protection regulations and contract law principles.
