Document background
The MoU for Sponsorship is typically used in Switzerland when parties wish to formalize their intention to enter into a sponsorship arrangement while maintaining some flexibility in their commitments. This document type is particularly useful in the early stages of sponsorship negotiations, where parties want to outline key terms and conditions but may need to finalize specific details. The MoU provides a framework for the relationship, covering essential elements such as sponsorship rights, financial arrangements, and brand usage, while clearly indicating which provisions are binding and which are subject to further negotiation. Under Swiss law, while MoUs are generally considered non-binding, certain provisions (such as confidentiality and governing law) can be made explicitly binding. This approach allows parties to progress their sponsorship discussions with clear documentation of their intentions while maintaining the ability to adjust terms as the relationship develops.
