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The Advance Payment Agreement Letter is a crucial document used in Swiss commercial transactions where one party requires payment before delivering goods or services. This document type is particularly important in industries with significant upfront costs or custom-made products. Under Swiss law, particularly the Swiss Code of Obligations, such agreements require clear specification of payment terms, delivery obligations, and refund conditions. The letter format provides a more streamlined alternative to a full contract while maintaining legal enforceability. It typically includes details about the advance payment amount, payment schedule, bank details, delivery timeframes, and circumstances under which the payment would be refunded. The document serves both as a payment instruction and a legal safeguard, ensuring clarity and protection for all parties involved in the transaction.
