Document background
The Reverse Purchase Agreement is commonly used in commercial transactions where parties seek to arrange temporary transfers of assets with predetermined repurchase arrangements. This document type is particularly relevant in situations involving short-term financing arrangements, inventory management, or strategic asset transfers. The agreement must comply with Swiss law, particularly the Swiss Code of Obligations, and typically includes detailed provisions on asset valuation, transfer mechanics, pricing formulas, and risk allocation. It serves as a crucial tool for businesses requiring flexible asset management while maintaining future control over the assets. The document's Swiss jurisdiction provides a stable and well-established legal framework, making it particularly attractive for international commercial transactions. The Reverse Purchase Agreement should clearly outline all obligations, timelines, and conditions for both the initial sale and subsequent repurchase, including any security arrangements or third-party rights.
