Document background
The Promissory Agreement is a fundamental instrument in Swiss commercial and civil law, used to formalize monetary obligations between parties. It serves as a legally binding commitment where one party promises to pay a specified sum to another, either at a fixed future date or on demand. This document type is particularly useful in business transactions, loans, real estate dealings, and other commercial arrangements where a formal acknowledgment of debt is required. Under Swiss law, the agreement must conform to the requirements set forth in the Swiss Code of Obligations, particularly Articles 984-996 which govern promissory notes. The document typically includes essential elements such as the unconditional promise to pay, the specified amount, payment terms, and the identities of both the promisor and promisee. It can be used as evidence in debt collection proceedings and provides the promisee with certain legal advantages in terms of enforcement.
