The Letter of Intent for Services is a crucial preliminary document used in Swiss business practice when parties wish to formally express their intention to enter into a service arrangement while maintaining flexibility for detailed negotiations. This document type is particularly relevant in complex service arrangements where parties need to establish basic understanding and certain binding commitments (such as confidentiality and exclusivity) before proceeding with full contract negotiations. Under Swiss law, while generally non-binding in nature, certain provisions of the LOI can create legally binding obligations, making it essential to clearly distinguish between binding and non-binding elements. The document typically precedes more detailed service agreements and is commonly used in cross-border transactions involving Swiss entities or in domestic Swiss service arrangements where parties need to document their preliminary understanding while conducting due diligence or securing internal approvals.
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1. Opening Details: Date, sender/recipient details, and subject line clearly identifying this as a Letter of Intent for Services
2. Introduction: Brief introduction identifying the parties and their roles
3. Purpose Statement: Clear statement of the purpose of the LOI and the contemplated services arrangement
4. Scope of Services: High-level description of the services being contemplated
5. Key Commercial Terms: Outline of the principal commercial terms being considered, including general pricing structure
6. Timeline: Proposed timeline for negotiation, due diligence, and execution of definitive agreements
7. Binding Provisions: Clear identification of which provisions are intended to be legally binding
8. Non-Binding Nature: Express statement that, except for specified provisions, the LOI is non-binding
9. Signature Block: Formal closing and signature spaces for both parties
1. Exclusivity: Optional provision preventing the recipient from negotiating with other parties for a specified period
2. Due Diligence: Include when specific due diligence requirements or processes need to be outlined
3. Cost Allocation: Include when parties need to specify how costs during the negotiation period will be handled
4. Break Fee: Include when parties want to specify compensation if one party terminates negotiations
5. Interim Arrangements: Include when certain services need to commence before the final agreement
6. Regulatory Requirements: Include when the contemplated services require specific regulatory approvals or compliance measures
1. Term Sheet: High-level summary of key commercial terms being considered for the final agreement
2. Service Description: Preliminary detailed description of the proposed services
3. Timeline Overview: Detailed timeline with key milestones for negotiation and implementation
4. Due Diligence Requirements: List of required documentation and information for due diligence process
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