Document background
The Promissory Contract of Purchase and Sale is a fundamental document in Swiss commercial practice, particularly useful in complex transactions where immediate completion is not practical or desired. This preliminary agreement, while binding, allows parties to secure their transaction while managing various prerequisites such as due diligence, financing arrangements, or regulatory approvals. It is commonly used in real estate transactions, business acquisitions, and significant asset purchases where careful preparation is needed before final closing. The document must strictly comply with Swiss legal requirements, including the Swiss Code of Obligations and, where applicable, cantonal regulations. The contract typically includes detailed specifications of the transaction terms, conditions precedent, timeline for conclusion of the final sale, and consequences of non-performance. It provides a crucial framework for transitioning from initial agreement to final sale while protecting both parties' interests under Swiss law.
