The treaty was negotiated by Stibor of Stiboricz and Zawisza Czarny, two of the most famous Polish knights of the late Middle Ages.

The Hungarian state was experiencing large financial problems due to constant wars with the Ottoman Empire, as well as pressure from the Habsburg family.

At the same time, Hungary offered secretly to support the Polish rights to the province of Pomerelia, lost to the Teutonic Order.

Finally, in exchange for a loan of sixty times the amount of 37,000 Prague groschen, that is approximately seven tonnes of pure silver, the Hungarian crown pawned 16 rich salt-producing towns in the area of Spisz (Szepes), as well as a right to incorporate them into Poland until the debt is repaid.

From there they proceeded to Buda, where the treaty was officially signed in presence of King Tvrtko II of Bosnia, fourteen dukes and princes, three archbishops, eleven bishops and ambassadors of seventeen states, including the Tartar Horde and the Ottoman Empire, as well as roughly 40,000 nobles and knights.