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Discount Agreement Template for Switzerland

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Key Requirements PROMPT example:

Discount Agreement

"I need a Discount Agreement under Swiss law for my technology distribution business, offering tiered volume-based discounts ranging from 5% to 15% to corporate buyers, with quarterly performance reviews and an initial term until December 31, 2025."

Document background
The Discount Agreement is a crucial commercial document used to formalize pricing incentives between business parties in Switzerland. It is particularly relevant when a supplier wishes to offer structured price reductions to buyers based on various criteria such as purchase volume, payment terms, or long-term commitment. The agreement, governed by Swiss law, typically includes detailed provisions on discount calculations, qualifying conditions, reporting requirements, and verification procedures. It serves as a key tool for business relationship management, ensuring transparency and legal certainty in commercial transactions while complying with Swiss competition law and the Swiss Code of Obligations. This type of agreement is commonly used in both domestic Swiss commerce and international trade relationships where Swiss law is chosen as the governing law.
Suggested Sections

1. Parties: Identification and details of the contracting parties

2. Background: Context of the agreement and business relationship between the parties

3. Definitions: Key terms used throughout the agreement

4. Scope of Agreement: Description of products/services covered by the discount arrangement

5. Discount Structure: Details of discount types, rates, and calculation methodologies

6. Qualifying Conditions: Conditions that must be met to qualify for discounts

7. Term and Termination: Duration of the agreement and termination provisions

8. Payment Terms: Terms for payment and application of discounts

9. Reporting and Verification: Requirements for reporting sales/purchases and verification of discount eligibility

10. Confidentiality: Provisions for handling confidential information

11. Governing Law and Jurisdiction: Specification of Swiss law application and jurisdiction

Optional Sections

1. Volume Commitments: Minimum purchase volumes or commitments required, used when discounts are volume-based

2. Rebate Mechanism: Details of rebate calculations and payments, needed for retrospective discount arrangements

3. Marketing Cooperation: Terms for joint marketing activities, relevant when marketing support is part of the arrangement

4. Product Returns: Handling of returns and impact on discount calculations, important for product-based agreements

5. Competition Compliance: Specific provisions ensuring compliance with competition law, needed for larger commercial arrangements

6. Data Protection: Provisions for handling customer data, required when personal data processing is involved

7. Force Majeure: Provisions for unforeseen circumstances, recommended for longer-term agreements

8. Assignment: Rights and restrictions regarding assignment of the agreement, important for corporate groups

Suggested Schedules

1. Schedule 1 - Discount Rates: Detailed breakdown of discount percentages, tiers, and applicable products/services

2. Schedule 2 - Calculation Examples: Examples showing how different discounts are calculated in various scenarios

3. Schedule 3 - Reporting Template: Standard format for periodic reporting of sales/purchase data

4. Schedule 4 - Product List: List of products/services covered by the discount agreement

5. Appendix A - Contact Details: Key contacts for both parties for various aspects of the agreement

6. Appendix B - Technical Requirements: Any technical specifications required for discount implementation

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions





























Clauses






























Relevant Industries

Retail

Manufacturing

Consumer Goods

Electronics

Pharmaceuticals

Automotive

Industrial Equipment

Technology

Food and Beverage

Chemical

Construction Materials

Telecommunications

Medical Devices

Fashion and Apparel

Relevant Teams

Legal

Finance

Commercial

Sales

Procurement

Business Development

Account Management

Pricing

Supply Chain

Contract Management

Commercial Operations

Relevant Roles

Commercial Director

Procurement Manager

Sales Director

Chief Financial Officer

Legal Counsel

Commercial Contract Manager

Business Development Manager

Account Manager

Finance Manager

Pricing Analyst

Supply Chain Manager

Category Manager

Commercial Operations Manager

Vendor Relations Manager

Industries






Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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