Document background
The Letter Of Intent Non Binding is a crucial preliminary document used in Swiss business transactions to outline the fundamental terms and conditions being considered by parties before entering into a definitive agreement. This document type is particularly relevant when parties wish to demonstrate serious interest in a transaction while maintaining flexibility during negotiations. Under Swiss law, while the main commercial terms are explicitly non-binding, certain provisions such as confidentiality and exclusivity can be made binding if specifically stated. The document typically precedes more detailed due diligence and formal contract negotiations, serving as a roadmap for the proposed transaction. It's commonly used in mergers and acquisitions, joint ventures, real estate transactions, and other significant business dealings where parties need to establish a framework for negotiations while protecting their interests under Swiss jurisdiction.
