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Pre Contract Agreement for Switzerland

Pre Contract Agreement Template for Switzerland

This Pre-Contract Agreement, governed by Swiss law, establishes the framework for negotiations between parties considering a significant business transaction. The document outlines the terms and conditions under which parties will conduct negotiations, including confidentiality obligations, exclusivity provisions (if applicable), and the allocation of costs. Under Swiss law, particularly the Swiss Code of Obligations, this agreement carefully distinguishes between binding elements (such as confidentiality and cost arrangements) and non-binding elements (such as the main commercial terms under negotiation). The document provides legal protection for parties during the negotiation phase while maintaining flexibility for the final terms of the intended transaction.

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What is a Pre Contract Agreement?

The Pre-Contract Agreement serves as a crucial document in complex business transactions under Swiss law, establishing the ground rules for negotiations while protecting parties' interests. It is typically used when parties are contemplating significant transactions such as mergers, acquisitions, joint ventures, or major commercial contracts where substantial due diligence or lengthy negotiations are anticipated. The agreement outlines confidentiality obligations, potentially includes exclusivity provisions, and allocates preliminary costs and responsibilities. While maintaining the generally non-binding nature of commercial negotiations, it creates certain binding obligations regarding conduct during the negotiation phase. This document is particularly important in the Swiss legal context, where the principles of good faith in pre-contractual negotiations (culpa in contrahendo) are strongly emphasized.

What sections should be included in a Pre Contract Agreement?

1. Parties: Identification and details of the parties entering into the pre-contract agreement

2. Background: Context of the proposed transaction and purpose of entering into the pre-contract agreement

3. Definitions: Key terms used throughout the agreement

4. Scope of Negotiations: Clear outline of what is being negotiated and the intended final agreement

5. Duration and Timeline: Period during which the pre-contract agreement remains valid and key milestone dates

6. Confidentiality Obligations: Provisions regarding the protection and non-disclosure of information shared during negotiations

7. Non-Binding Nature: Clear statement of which provisions are non-binding and that there is no obligation to enter into a final agreement

8. Binding Provisions: Specification of which provisions are legally binding (typically confidentiality, costs, and governing law)

9. Costs and Expenses: How costs incurred during the negotiation period will be borne

10. Governing Law and Jurisdiction: Specification of Swiss law as governing law and jurisdiction for disputes

What sections are optional to include in a Pre Contract Agreement?

1. Exclusivity: Used when parties agree not to negotiate with other parties during the negotiation period

2. Break Fee: Include when parties agree on compensation if one party withdraws from negotiations under specific circumstances

3. Intellectual Property Rights: Include when negotiations involve sharing of IP or creation of new IP during the negotiation process

4. Due Diligence Process: Include when the pre-contract agreement covers the terms of a due diligence investigation

5. Press Releases and Announcements: Include when there's a need to control public communications about the negotiations

6. Non-Solicitation: Include when parties want to prevent hiring of each other's employees during negotiations

7. Term Sheet Summary: Include when parties want to document preliminary agreed commercial terms, while maintaining their non-binding nature

What schedules should be included in a Pre Contract Agreement?

1. Schedule 1 - Negotiation Timeline: Detailed timeline of the negotiation process and key milestones

2. Schedule 2 - Authorized Representatives: List of individuals authorized to conduct negotiations on behalf of each party

3. Schedule 3 - Confidential Information: Definition and categories of information deemed confidential

4. Appendix A - Term Sheet: Initial non-binding commercial terms agreed between the parties

5. Appendix B - Due Diligence Requirements: If applicable, list of documents and information required for due diligence

6. Appendix C - Form of NDA: If separate from main agreement, form of confidentiality agreement to be signed by involved parties

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Switzerland

Publisher

Ƶ

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions



























Clauses






























Relevant Industries

Manufacturing

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Real Estate

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Energy

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Corporate Development

Business Development

Executive Leadership

Finance

Mergers & Acquisitions

Commercial

Strategy

Risk Management

Compliance

Relevant Roles

Chief Executive Officer

Chief Legal Officer

General Counsel

Legal Director

Head of Business Development

Chief Financial Officer

Corporate Development Director

Senior Legal Counsel

Commercial Director

Mergers & Acquisitions Director

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Legal Operations Manager

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Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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