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Letter of intent

Key points and English template

On this page, we provide you with an overview of the most important aspects of a Letter of Intent in Switzerland, including the elements to be taken into account when drawing up the agreement.

Subsequently, we will provide you with a legally compliant template of a Letter of Intent under Swiss law.

Use a letter of intent if ...

… you are about to negotiate an important business and wish to set some ground rules for the negotiations

… you want to secure your interest in an important business and want to restrict your potential partner from negotiating with others

… you have already reached an understanding on the main business terms and want to lay them down in writing

Key Points included in a Letter of Intent:

Description of the main terms of the intended business relationship, including the main contractual, legal and price aspects
Confidentiality covenants for all information exchanged during the negotiations and how long the information will have to be kept secret
Whether the parties are restricted from talking with other organizations about the same business (exclusivity) and, if so, for how long
Whether the parties are restricted from soliciting the other party's employees
Any conditions or authorizations required to complete the intended project

What is a Letter of Intent?

A letter of intent or “LoI” is a document outlining the understandings between two or more parties on how they will conduct negotiations and what they will negotiate.

The parties express their interest in entering into a business relationship that will be governed by a final, yet-to-be-negotiated agreement. A major advantage of using LoIs is that they enable the parties to define the procedural rules applicable to the negotiations (for example exclusivity, timeframe or confidentiality) in a binding manner, whereby the most important conditions for the intended agreement are described in an indicative manner.

The definition of a content-related and formal framework for the negotiations accelerates the process until a binding agreement is signed.

Legally compliant template of a Letter of Intent

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