Document background
The Future Purchase Agreement is a strategic commercial contract used when parties want to secure future trading relationships with certainty of terms. Common in Swiss commercial practice and governed by Swiss law, particularly the Code of Obligations, this agreement is typically employed when businesses need to ensure supply chain security, lock in future pricing, or establish long-term commercial relationships. The document comprehensively outlines the future purchase obligation, including specific details about the goods or assets, pricing mechanisms, delivery terms, quality requirements, and conditions precedent that must be met. It's particularly valuable in industries with long lead times, volatile pricing, or complex supply chain requirements, providing both parties with clear rights and obligations while maintaining flexibility through carefully structured conditions and trigger events.
