Document background
The Commitment Letter for Payment is a crucial document in Swiss commercial practice, commonly used when one party needs to formally document their obligation to make a payment to another party. This document type is particularly relevant in scenarios such as advance payments for large transactions, settlement agreements, or structured payment arrangements. The letter must comply with Swiss law, particularly the Swiss Code of Obligations, and typically includes specific details about the payment amount, timing, and method of transfer. A Commitment Letter for Payment can be used independently or as part of a larger transaction structure, and it provides the beneficiary with a clear, enforceable right to receive payment. The document is especially common in international business transactions where Swiss law is chosen for its reliability and well-established legal framework.
