Commitment Agreement Template for Switzerland

A Commitment Agreement binds two or more parties to follow through on specific promises or obligations under Swiss law. Companies often use these agreements to lock in important business arrangements before finalizing all the details in a full contract. They're especially common in mergers, real estate deals, and major commercial transactions.

While less formal than a complete contract, Swiss courts generally recognize Commitment Agreements as legally binding when they include clear terms, consideration, and signatures from all parties. The agreement creates mutual obligations and can specify key deadlines, basic terms, and consequences for breaking the commitment. Many Swiss businesses use them as stepping stones toward more detailed agreements.

Use a Commitment Agreement when you need to secure important business promises before finalizing all the details. This agreement proves especially valuable during complex Swiss real estate transactions, company acquisitions, or joint ventures where parties need to move forward quickly while still working out specifics.

The timing works well when you have agreed on key terms but need more time for due diligence, regulatory approvals, or detailed contract negotiations. Swiss businesses often use these agreements to lock in essential deal points, prevent parties from walking away, and create clear obligations while maintaining momentum toward the final contract. They're particularly useful in time-sensitive situations or when dealing with multiple stakeholders.

• Basic Commitment Letter: Simple form stating key terms and mutual promises, commonly used in smaller business deals or preliminary negotiations
• Detailed Investment Commitment: Includes specific financial terms, timelines, and conditions - typical in Swiss venture capital or real estate transactions
• Conditional Commitment Agreement: Contains specific requirements that must be met before obligations become binding, often used in corporate mergers
• Framework Commitment: Outlines broader, long-term cooperation terms while allowing flexibility for future specific agreements
• Performance-Based Commitment: Links obligations to specific measurable outcomes, popular in construction and development projects

• Corporate Executives: Sign Commitment Agreements on behalf of their companies during mergers, acquisitions, or strategic partnerships
• Real Estate Developers: Use these agreements to secure property deals and development rights before final contracts
• Legal Counsel: Draft and review agreements to ensure compliance with Swiss law and protect client interests
• Investment Firms: Rely on commitments to lock in funding arrangements and investment terms
• Business Partners: Exchange mutual commitments when establishing joint ventures or collaborative projects
• Board Members: Review and approve significant commitment agreements as part of corporate governance

• Party Details: Gather full legal names, addresses, and signing authority for all involved parties
• Core Terms: Define the specific commitments, timelines, and key obligations clearly in writing
• Documentation: Collect relevant supporting documents, including business registrations and proof of authority
• Timeline Planning: Set realistic deadlines for each commitment phase and milestone
• Risk Assessment: Identify potential challenges and include appropriate safeguards or exit clauses
• Compliance Check: Ensure alignment with Swiss contract law and industry regulations
• Final Review: Use our platform to generate a legally sound agreement that includes all mandatory elements

• Party Identification: Full legal names, addresses, and authorized representatives of all parties
• Commitment Scope: Clear description of promised actions, deliverables, or obligations
• Duration Terms: Specific timeframes, deadlines, and key milestone dates
• Consideration: Details of any exchange of value or mutual benefits
• Performance Conditions: Prerequisites and requirements for fulfilling commitments
• Termination Rights: Circumstances and procedures for ending the agreement
• Governing Law: Explicit reference to Swiss law and jurisdiction
• Signature Block: Space for dated signatures from authorized representatives

A Commitment Agreement differs significantly from a Business Acquisition Agreement in several key ways. While both documents play roles in business transactions, they serve distinct purposes under Swiss law.

• Timing and Scope: Commitment Agreements are preliminary documents that outline basic promises and intentions, while Business Acquisition Agreements are comprehensive final contracts detailing the complete transaction
• Level of Detail: Commitment Agreements contain essential terms and basic obligations, whereas Business Acquisition Agreements include exhaustive terms, warranties, and detailed closing conditions
• Legal Binding Power: Commitment Agreements create basic enforceable obligations but leave room for negotiation, while Business Acquisition Agreements establish final, fully binding terms
• Duration: Commitment Agreements typically serve as temporary bridges toward final agreements, while Business Acquisition Agreements govern the entire transaction through completion