Contract law

Purchases, building work, travel, loans between relatives and services

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This page presents the contracts that private individuals most often conclude and that are not covered elsewhere on this website. Employment contracts, leases and compensation for damage have their own pages: employment law, tenancy law and civil liability. Recovering an unpaid sum is explained on the debt collection page.

Contracts covered on this page

• Purchases: faulty goods, online purchases, used cars.
• Building work and repairs: quotes, delays, defective work, new construction-defects rules in force since 1 January 2026.
• Travel: package travel, cancelled or delayed flights, baggage, accommodation.
• Subscriptions and doorstep selling: automatic renewal, general terms and conditions, sales at home or by telephone.
• Credit and leasing: withdrawal, early termination, maximum interest rate.
• Money between relatives: loans without a written contract, guaranteeing a child’s lease, gifts.
• Services: coaches, fiduciaries, private schools, brokers.

The rules common to all contracts (form, evidence, formal notice) and the time limits are grouped at the end of the page.

The seller is liable for defects

The seller warrants that the item has the promised qualities and has no defect that removes or significantly reduces its value or its fitness for the intended use, even if the seller was unaware of the defect (art. 197 of the Code of Obligations, CO (new tab)). The seller is not liable for defects that the buyer knew about nor, unless the seller asserted that they were absent, for those that a sufficiently careful examination would have revealed (art. 200 CO (new tab)).

Report the defect without waiting

The buyer must examine the item as soon as possible and notify the seller without delay of any defect. A hidden defect must be reported immediately after its discovery. Otherwise, the item is deemed to have been accepted with its defects (art. 201 CO (new tab)); however, a seller who has intentionally deceived the buyer cannot rely on late notice (art. 203 CO (new tab)).

The time limit is counted in days: according to the Federal Supreme Court, notice given two or three working days after discovery is in time, but notice given 17 or 20 days later is late (Federal Supreme Court judgment 4C.205/2003 of 17 November 2003 (new tab), consid. 3.2). A defect is only discovered once the buyer can determine its nature and assess its extent; for a defect that gets worse, the first signs do not yet amount to discovery. To be on the safe side, react as soon as a problem appears, with a dated and precise written notice and photos.

Cancellation, price reduction or replacement

If the defect was reported in time, the buyer may choose between:

• cancellation of the sale: the buyer returns the item, and the seller refunds the price with interest and compensates the direct loss, as well as any further loss unless the seller proves the absence of fault (art. 205 and 208 CO (new tab));
• a price reduction, if the buyer keeps the item; the court may in fact limit itself to this if cancellation is not justified;
• replacement with an item free of defects, if the sale concerns fungible goods, i.e. goods that can be replaced by others of the same kind (art. 206 CO (new tab)).

The law, however, provides no right to have the item repaired: the buyer cannot demand it, and the seller can only impose it if the contract provides for it (see below). Nor does it give a right to software updates for a connected device. If a defective product has caused an accident, see also product liability under civil liability.

Two years to take action

Warranty claims become time-barred two years after delivery, even if the defect is discovered later, unless the seller has promised a longer warranty (art. 210 CO (new tab)). Reporting the defect is not enough: if the seller does not act on it, you must bring court proceedings or interrupt the limitation period before it expires (see time limits to remember).

Art. 210 CO (new tab) adds three points:

• a professional seller cannot reduce this period to less than two years, or one year for a second-hand item, if the item is intended for the buyer’s personal or family use (para. 4);
• if the defect was reported in time (art. 201 CO (new tab)) before the end of the period, the buyer can still raise it against a seller who claims the price after the period has expired (para. 5);
• a seller who has intentionally deceived the buyer cannot rely on the limitation period (para. 6).

Material built into a building (tiles, parquet flooring…) whose defect causes a defect in the building work: for a purchase made on or after 1 January 2026, notice may be given within 60 days (from discovery for a hidden defect); the claim becomes time-barred after five years, a rule already in force since 2013 (art. 201 (new tab) para. 4 and 210 para. 2 CO (new tab)). See building work and repairs.

Warranty exclusions and the “manufacturer’s warranty”

Subject to the minimum period mentioned above, the contract may restrict the warranty, e.g. to repair only, or exclude it. Such a clause is void if the seller fraudulently concealed the defect (art. 199 CO (new tab)). In general terms and conditions, a clause that, contrary to good faith, creates a significant and unjustified imbalance between rights and obligations to the detriment of the consumer is unfair (art. 8 of the Unfair Competition Act, LCD (new tab)); according to the Federal Consumer Affairs Bureau, a total exclusion of the warranty exposes the trader to this risk (see general terms).

The “manufacturer’s warranty” or “commercial warranty” is a promise separate from the seller’s statutory warranty, and the two can coexist. Where the seller grants such a warranty, the Federal Supreme Court requires the exclusion of the statutory warranty to be clear from the contract: a general phrase such as “all other claims are excluded” is not enough. It can be inferred that the seller cannot, in principle, simply refer the buyer to the manufacturer.

Buying online

The warranty also applies to online purchases, but there is no general right of withdrawal (see the questions below). The website must clearly state the trader’s identity and address, including an e-mail address, allow input errors to be corrected before the order is sent, and then confirm the order without delay by e-mail (art. 3 para. 1 let. s LCD (new tab)).

• Late delivery: you must call on the seller to deliver, unless a fixed delivery date was agreed, and then, in principle, set a reasonable time limit before you can renounce the delivery (art. 102 and 107 CO (new tab); see rules common to all contracts);
• Parcel lost in transit: under the law, the risk passes to the buyer in principle as soon as the contract is concluded, unless special circumstances or terms provide otherwise, and, for goods taken from stock that are to be shipped, as soon as the seller has handed them over for shipment (art. 185 CO (new tab)); many traders provide otherwise in their general terms and conditions;
• Obviously wrong price: according to the Federal Consumer Affairs Bureau, the courts have not decided whether a price displayed online binds the trader. Even if the contract is concluded, the trader may invoke a fundamental error where the price is considerably lower than the one intended (art. 24 para. 1 no. 3 CO (new tab)). The situation remains uncertain;
• Foreign website: Swiss law and the court of your place of residence may apply under certain conditions (art. 114 (new tab) and 120 LDIP (new tab), Lugano Convention).

Buying a used car

The seller’s statements about the mileage, the absence of accidents or the servicing may constitute promised qualities (art. 197 CO (new tab)). The clause “sold without warranty” is in principle valid, particularly between private individuals, except in the case of fraudulent concealment. Nor does it cover a defect entirely outside what the buyer could reasonably expect and which seriously undermines the economic purpose of the contract, an exception that the Federal Supreme Court applies with restraint (ATF 130 III 686 (new tab), consid. 4.3.1). A car dealer selling to a private individual for private use cannot reduce the time limit to take action to less than one year (art. 210 para. 4 CO (new tab)).

In the event of deception (tampered odometer, concealed accident), the buyer can also invalidate the sale for fraud (in French dol), by declaring to the seller, within one year of the discovery, that he or she does not intend to honour it (art. 28 and 31 CO (new tab); see defects in consent); if the buyer chooses the warranty instead, the seller who deceived him or her cannot raise the two-year limitation period (art. 210 para. 6 CO (new tab)).

Documentation and useful links

• SECO: problems after a purchase (in French)WEB
• Federal Consumer Affairs Bureau: frequently asked questions (in French)WEB

What a contract for work and services is

The contractor (tradesperson, construction company, garage, repairer) undertakes to carry out a piece of work – construction, alteration or repair of a building, a vehicle or an appliance – in return for a price that the client, known in law as the customer (maître de l’ouvrage), undertakes to pay (art. 363 of the Code of Obligations, CO (new tab)). The contractor owes the promised result, not merely its best efforts. A signed quote or a written confirmation makes it easier to prove what was ordered.

A contract with an architect (plans and site supervision) may be terminated at any time by either party, but a party that does so at an inopportune time must compensate the other (art. 404 CO (new tab)). Defects in a home you rent are a matter of tenancy law. If the tradesperson approached you uninvited at home, in the street or by telephone, you can in principle revoke the contract within 14 days: see doorstep selling.

Fixed price or approximate estimate

A fixed price (prix forfaitaire) binds the contractor, even if the work turned out to cost more, save in extraordinary and unforeseeable circumstances; the client owes it in full, even if the work required less (art. 373 CO (new tab)). With an approximate estimate (devis approximatif), the price depends on the value of the work and the contractor’s expenses (art. 374 CO (new tab)).

If the estimate is exceeded to an excessive degree for reasons not attributable to the client, the client may withdraw from the contract, during or after performance. In the case of a building on the client’s own land, the client may ask for an appropriate price reduction or, as long as it is not completed, stop the work by paying fair compensation for the work already done (art. 375 CO (new tab)). Additional work that was ordered or accepted is not included in the calculation. The case law generally allows a tolerance of about 10%, and the contractor must report an excessive overrun without delay. Be careful: paying without reservation while aware of the overrun amounts to accepting it.

Delay and termination

If the contractor is late in starting or falls so far behind that, in all likelihood, the work cannot be delivered on time, the client may withdraw from the contract without waiting for the deadline (art. 366 CO (new tab)), in principle after first setting a grace period (see formal notice, in French mise en demeure). If it becomes certain, while the work is in progress, that it will be defective through the contractor’s fault, the client may set the contractor a reasonable time limit, with a warning that otherwise the remaining work will be entrusted to a third party at the contractor’s expense and risk, without prior authorisation from the court.

The client may also terminate at any time before completion, without giving reasons, but must then pay for the work done and fully compensate the contractor (art. 377 CO (new tab)): in the event of a mere delay, a formal notice is preferable.

Reporting defects: 60 days for immovable work, “immediately” for a vehicle or an appliance

After delivery, the client must inspect the work as soon as possible and report any defects (art. 367 CO (new tab)). For a vehicle, an appliance or a piece of furniture, notice must be given “immediately”, with a short period for reflection depending on the circumstances; a hidden defect must be reported as soon as it is discovered. Once this time has passed, the work is deemed accepted, unless a defect was intentionally concealed (art. 370 CO (new tab)). To be safe, report defects in writing, precisely and with photographs.

Your rights if there is a defect

If the defect was reported in time, the client may, depending on its seriousness, demand repair free of charge if this is possible without excessive expense, reduce the price in proportion to the loss of value or, if the work is unusable or cannot reasonably be accepted, reject it; this last right does not exist for a construction on the client’s land whose removal would be disproportionate. The client may also claim damages if the contractor is at fault (art. 368 CO (new tab); calculating the loss: see civil liability).

If the contractor does not carry out the repair within the reasonable time limit set, accompanied by a warning, the client may have the repair done by another firm, at the expense and risk of the defaulting contractor; since 2026, the law expressly provides for this (art. 368 (new tab) para. 2 and 366 para. 2 CO (new tab)). The client loses these rights, however, if the defect is attributable to the client, e.g. if the client disregarded the contractor’s express warnings (art. 369 CO (new tab)).

Paying or withholding the price

The price is payable on delivery, unless advance payments were agreed (art. 372 CO (new tab)). As long as the requested repair has not been carried out, the client may withhold payment, provided the client expressly relies on this right (art. 82 CO (new tab); see Rules common to all contracts). It is wise to withhold only an amount in proportion to the defects. Payment order: see debt enforcement.

Conversely, the garage may retain your vehicle until the repair bill that has fallen due is paid (art. 895 of the Civil Code, CC (new tab)), even if the car does not belong to you (e.g. a leased car), provided the garage received it in good faith. If you pay to get it back while disputing the bill, state in writing that you are paying “with all rights reserved” (sous toutes réserves).

Proving poor workmanship

It is for the client to prove the defect. During the inspection following delivery, either party may ask the court, at its own expense, to have the work examined by an expert (art. 367 para. 2 CO (new tab)), without having to show any particular interest. The Geneva Court of Justice, however, limits this route to the inspection phase: it refused it three years after delivery. Later on, the client must apply for a precautionary taking of evidence (preuve à futur), i.e. an expert report ordered by the court before any lawsuit, by showing it to be likely that the evidence is at risk or that there is an interest worthy of protection (art. 158 of the Civil Procedure Code, CPC (new tab)). The parties may also agree in writing to entrust the disputed facts to an arbitral expert (expert-arbitre), whose findings are in principle binding on the court (art. 189 CPC (new tab)). Before any repair, photograph the defects. Before commissioning an expert report, check your legal expenses insurance.

Limitation period

The client’s rights become time-barred 2 years after acceptance for movable work (repaired vehicle or appliance, furniture), and 5 years after acceptance for immovable work, against the contractor as well as against the architect or engineer (art. 371 CO (new tab)). The 5 years also apply to movable work incorporated into immovable work, if it caused the defect. In a contract concluded in or after 2026, this five-year period can no longer be shortened. Notice of defects does not interrupt the limitation period: this requires an acknowledgement by the contractor, debt enforcement proceedings, a request for conciliation or a court action (see Time limits to remember). A defect reported in time may nevertheless still be raised after expiry, e.g. to refuse payment.

The tradesperson’s bill is in principle time-barred after 5 years (art. 128 no. 3 CO (new tab)), or after 10 years for work that is not purely craft work: see Time limits to remember.

Buying a new home or off-plan

The sale of real property, including a unit in a condominium (propriété par étages, PPE), is made before a notary (art. 216 CO (new tab)). When buying off-plan, if you become the owner on signing, the parts still to be built are governed by the contract for work and services. For a sale concluded on or after 1 January 2026, the buyer has 60 days to report defects and 5 years from the transfer of ownership to take action, and these time limits cannot be shortened (art. 219a CO (new tab)). If the building is still to be built or was built less than two years before the sale, the buyer may also demand repair free of charge of the defects, and this right cannot be excluded: the developer can no longer exclude all warranty by assigning to the buyer its rights against the contractors.

For an older property, the “sold as is” clause (vendu en l’état) remains valid in principle, unless a defect was fraudulently concealed (art. 199 CO (new tab)). It does not, however, cover a wholly unexpected defect that seriously undermines the purpose of the purchase, such as a house that is largely uninhabitable, an exception the Federal Supreme Court accepts with restraint (see Purchases: warranty and defects). In a condominium, a unit owner who has a right to repair against the contractor (e.g. an off-plan purchase from a general contractor) may exercise it in full, even for a defect in the common parts and whatever the size of their share, in coordination with the community of owners (ATF 145 III 8 (new tab)). A revision of the law on condominium ownership, which deals in particular with off-plan purchases, is pending before Parliament (Federal Council dispatch of 13 May 2026).

Builders’ lien: the risk of paying twice

Tradespeople and contractors who worked on the site, subcontractors included, may have a builders’ lien (hypothèque légale des artisans et entrepreneurs) registered on the property (art. 837 CC (new tab)), even if you have already paid the general contractor. A mere supplier of materials is not entitled to one. The lien, at least provisionally, must be entered in the land register within four months of completion of the work, the date of the invoice being irrelevant (art. 839 CC (new tab)); in Geneva, provisional registration is applied for at the Court of First Instance (in French Tribunal de première instance).

As the Federal Council decided in 2025 not to amend the law, protect yourself by contract: direct payments to subcontractors or a retention on the balance until the four months have expired. Adequate security (e.g. a bank guarantee) prevents registration; since 2026, it need only cover default interest for ten years.

Documentation and useful links

• FOJ: Liability for construction defects (in French)WEB
• RO 2025 270: amendment of the Code of Obligations on construction defects (in French)WEB

Package travel

A package exists where at least two services – transport, accommodation or another significant tourist service – are combined in advance and sold at an inclusive price, for more than 24 hours or including an overnight stay (art. 1 LVF (new tab)): “flight + hotel”, a tour, a cruise, a language stay. A hotel only or a flight only is not a package.

The organiser or the travel agency is liable for the whole trip, even for services provided by third parties (hotel, airline, transfers), and may then seek recourse against them (art. 14 LVF (new tab)). The information in its brochure is binding on it: it may change that information only with your consent, or if the brochure provides for this and the change was clearly communicated to you before the contract was concluded (art. 3 LVF (new tab)). The Act is mandatory: general terms and conditions may not depart from it to your detriment, except where it so provides (art. 19 LVF (new tab)).

Cancellation or price increase before departure

If the organiser cancels for a reason not attributable to you, you may choose between another package of equivalent or higher quality (if it can offer one), a package of lower quality with a refund of the difference, or the prompt refund of all sums paid (art. 10 and 11 LVF (new tab)). Damages are payable on top of this, except in a case of force majeure or where the minimum number of participants has not been reached and this was notified in writing within the time limit set in the contract. Overbooking is not a case of force majeure; nor, according to the Geneva Court of Justice, is a strike by the pilots of the airline included in the package (ACJC/720/2006).

Even in a case of force majeure, a full refund remains due: only the damages fall away. The Court of Justice so held for trips cancelled because of COVID-19, upholding a judgment that had declared void a clause retaining 20% of the price (ACJC/1457/2024).

A price increase is permitted only if the contract provides for it with a precise method of calculation, if it takes place at least three weeks before departure and if it results from an increase in transport costs (including fuel), taxes or exchange rates (art. 7 LVF (new tab)). Above 10%, you may terminate the contract without paying compensation, by informing the organiser without delay, with the same options as in the event of cancellation (art. 8 (new tab) and 10 LVF (new tab)).

A problem at your destination

Report any problem as soon as possible, in writing or in another appropriate form, to the service provider (e.g. the hotel reception) and to the organiser or the travel agency (art. 12 LVF (new tab)), while also complying with the complaint period set in the contract. Keep evidence: photos, written exchanges.

If, after departure, a significant part of the services is not provided, the organiser must offer a suitable alternative at no extra cost and refund the difference in price; if this is impossible or if you reject that alternative for good reasons, the organiser must endeavour to arrange your return and compensate you for your loss (art. 13 LVF (new tab)). The organiser is not liable if the problem is due to your own fault, to the unforeseeable or insurmountable failure of a third party unconnected with the trip, to force majeure or to an event that could not be avoided despite all due care; in these last three cases, however, the organiser must endeavour to assist you (art. 15 LVF (new tab)), and the price of the services not provided must still be refunded. For personal injury, see the civil liability page.

On your return, the Ombudsman of the Swiss Travel Industry can act as a mediator with a travel agency, a tour operator or accommodation located in Switzerland. It is free of charge for travellers, but a fee may be charged for the review if legal protection insurance or a lawyer has already been instructed. This step does not interrupt the limitation period and does not preserve any time limit (see time limits).

If you decide not to travel

Unlike European law, Swiss law provides no general right to cancel free of charge, even in exceptional circumstances at the destination: the cancellation fees are those set in the contract. If you are prevented from travelling, you may transfer your booking to a person who satisfies the conditions for the trip, by notifying the organiser within a reasonable time before departure; you and that person are then jointly and severally liable (each for the whole amount) for the price and for the costs caused by the transfer (art. 17 LVF (new tab)). Against manifestly excessive fees, you may ask the court to reduce them as an excessive contractual penalty (art. 163 para. 3 CO (new tab)) or argue that the clause is unfair under the Unfair Competition Act (art. 8 LCD (new tab); see general terms and conditions), but the outcome is uncertain. Cancellation insurance may cover these fees if you are unable to travel (illness, accident…); if it is the organiser who cancels, contact the organiser first, as the insurer may rely on a subsidiarity clause, which releases it from paying as long as the organiser must refund you (Geneva Court of Justice, ACJC/1457/2024). This insurance contract is explained on the private insurance page.

Travel agency bankruptcy

The organiser must guarantee the refund of the amounts paid and your repatriation in the event of bankruptcy, and provide you with proof of this on request; failing this, you may terminate the contract in writing before departure (art. 18 LVF (new tab)). The Guarantee Fund of the Swiss Travel Industry thus refunds the sums paid before departure and organises repatriation, but only for packages sold by its participants (list available online). For a flight only or a hotel only, there is no guarantee of this kind: if the airline goes bankrupt, you are merely one of the creditors in its bankruptcy.

Cancelled, delayed or overbooked flights

Regulation (EC) No 261/2004 (new tab) applies in Switzerland under the Air Transport Agreement concluded with the EU: flights departing from Switzerland, the EU, Norway or Iceland, and flights to those States operated by an airline established in one of them, whether booked as a flight only or as part of a package. The fixed compensation is EUR 250 for flights of up to 1'500 km, EUR 400 for flights of more than 1'500 and up to 3'500 km (and for any flight of more than 1'500 km between those States) and EUR 600 beyond that; it may be reduced by half if the replacement flight arrives with only a limited delay. It is due in the event of a cancellation announced less than two weeks before departure (unless you are offered a replacement flight at a similar time) and in the event of denied boarding against your will; the airline must first look for volunteers.

The airline may refuse cancellation compensation if it proves extraordinary circumstances. In any event, you keep the choice between a refund of the ticket within seven days and re-routing, as well as the right to assistance (meals, a hotel if necessary, two calls or messages). In the event of a delay at departure, assistance is due after 2, 3 or 4 hours depending on the distance; after 5 hours, you may give up the flight and be refunded. Compensation for delay is uncertain in Switzerland (see the questions below).

Steps. First complain to the airline in writing. If you do not receive a satisfactory answer within six weeks, you may refer the matter free of charge to the Federal Office of Civil Aviation (FOCA) using its signed form, one per person and per flight, with an identity document, the booking and the correspondence; in principle, FOCA no longer intervenes for a flight that took place more than a year ago. FOCA can fine the airline, but cannot order it to pay you: for that, you must bring a claim before the civil court.

Time limit and court. The Regulation sets no time limit; a Basel court, in an isolated decision not confirmed by the Federal Supreme Court, applied the two-year time limit of Swiss air law, running from arrival. To be safe, file your application for conciliation within two years: neither a claim to the airline nor a report to FOCA preserves this time limit. For a flight departing from or arriving in Geneva, the Geneva Court of First Instance (in French Tribunal de première instance) in principle has jurisdiction, because the airport is the place of performance of the contract according to a 2024 Zurich decision. However, against an airline established in the EU, a mere plane ticket does not allow you to sue in the courts of your domicile as a consumer.

The European Union has adopted a reform of these rules (Regulation (EU) 2026/2202), applicable in the EU from 23 October 2027. It will apply in Switzerland only once it has been incorporated into the Air Transport Agreement; until then, flights departing from Switzerland remain subject to the 2004 text.

Lost, damaged or delayed luggage

The airline is in principle liable under the Montreal Convention. For checked luggage that is lost, destroyed or damaged, it is liable even without fault, unless the damage results from an inherent defect in the luggage; for luggage kept in the cabin, only in the event of fault. For delayed luggage, it can escape liability by proving that it took all reasonable measures to avoid the damage (art. 17 (new tab) and 19 of the Convention (new tab)). Luggage that has not arrived 21 days after the scheduled date may be treated as lost. Compensation is capped at 1'519 Special Drawing Rights (the unit of account of the International Monetary Fund) per passenger, unless a special declaration of value was made at check-in. The time limits are strict (art. 31 and 35 of the Convention (new tab)):

• damaged luggage: written complaint as soon as the damage is discovered, at the latest within 7 days of receiving the luggage;
• delayed luggage: written complaint at the latest within 21 days of the date on which it was placed at your disposal;
• court action: within two years of arrival, failing which the right is forfeited.

Without a complaint within these time limits, no action can be brought, except in the case of fraud by the airline: to be safe, do not rely solely on the report filled in at the airport; write to the airline and keep a copy. FOCA is not competent for luggage: contact the airline and then, if necessary, your insurer or the civil court.

Delayed trains or buses

In Swiss public transport, under the Passenger Transport Act (LTV) and its Ordinance (OTV), compensation is at least 25% of the price paid for a delay on arrival of more than 60 minutes and at least 50% for more than 120 minutes (art. 21b LTV (new tab); art. 61 OTV (new tab)); according to the Federal Office of Transport (FOT), it is due even in cases of force majeure. It is in principle paid within 30 days, in cash if you so request, but the transport company may pay nothing below CHF 5.–. Nothing is due if the delay was announced before the ticket was purchased, nor for cableways and boats. For travelcards and season tickets, the company’s conditions apply.

Hotels and holiday rentals

Holiday accommodation rented for three months or less is not covered by the protective rules on residential leases (art. 253a para. 2 CO (new tab)); in the event of a defect, you can nevertheless demand that it be remedied, a rent reduction and damages. The reduction runs only from the time the landlord becomes aware of the defect: report it immediately, with photos (art. 259a (new tab) and 259d CO (new tab); see also tenancy law).

The hotelier is liable for your belongings that are damaged, destroyed or stolen, unless the hotelier proves that the damage was caused by you, by those accompanying you or by your visitors, by force majeure or by the nature of the items; if neither the hotelier nor the staff were at fault, liability is limited to CHF 1'000.– per guest (art. 487 CO (new tab)). Valuables, large sums of money and securities not entrusted to the hotel are in principle covered only if the hotelier or the staff were at fault (art. 488 CO (new tab)). Report the damage at once, otherwise your rights lapse; a sign stating “the management accepts no liability” has no effect (art. 489 CO (new tab)).

On Airbnb, your contracting party is the host, not the platform. Airbnb’s refund policy requires you to report accommodation that is inaccessible, unsanitary or very different from the listing within 72 hours of discovering the problem, with supporting evidence: this is a platform rule, not a statutory time limit. For accommodation rented in the EU, Norway or Iceland, the courts of the place where the property is located in principle have exclusive jurisdiction under the Lugano Convention (art. 22 CL (new tab)): a dispute over a chalet in France rented from a French owner must therefore in principle be brought in France. For a rental for personal use of no more than six consecutive months, you may also sue in the courts of the defendant’s domicile if the owner and you are domiciled in the same State.

Documentation and useful links

• FOCA: air passenger rightsWEB
• Guarantee Fund of the Swiss Travel IndustryWEB
• Ombudsman of the Swiss Travel IndustryWEB
• FOT: rights of train and bus passengersWEB

Subscriptions: what the law provides, and what it does not

No general statutory rule sets the duration, the tacit renewal, the notice period or the form of termination of a subscription. In 2020, Parliament decided not to require providers to warn customers before a tacit renewal (parliamentary initiative 13.426). Formal requirements, such as a registered letter to terminate a subscription concluded with one click, are not regulated either: the Federal Council is to examine them (postulate 25.3009, adopted by the Council of States on 5 March 2025), and its report is awaited.

A few mandatory rules nevertheless apply, even if the contract provides for a longer term:

• anyone who rents an item for private use from a business (e.g. a device rented with a subscription) can terminate with at least 30 days’ notice for the end of a three-month rental period, without compensation (art. 266k CO (new tab));
• a services contract that is a mandate (mandat), such as coaching, private lessons or advice, can be terminated at any time, with compensation if this is done at an inopportune time (art. 404 CO (new tab), see Services);
• a leasing contract subject to the Federal Act on Consumer Credit (LCC) can be terminated with at least 30 days’ notice for the end of a three-month contract period, by paying the amount shown in the table included in the contract (art. 17 para. 3 LCC (new tab), see Consumer credit and leasing).

Reading the general terms and conditions: unusual clauses and unfair clauses

Anyone who ticks “I have read and accept the general terms and conditions” accepts them as a whole and, in principle, is bound by them even without having read them. There are, however, two safeguards.

The unusual-clause rule (règle de l’insolite): the customer is not bound by an unusual clause to which his or her attention was not specifically drawn. Whether a clause is unusual is assessed from the customer’s point of view, at the time the contract is concluded. In addition, the clause must, objectively, change the nature of the contract or depart significantly from the rules that the law provides for that type of contract. The Federal Supreme Court thus set aside a clause in a sickness loss-of-earnings insurance policy that halved the benefits in the event of mental illness (ATF 138 III 411 (new tab)).

Unfair clauses: general terms and conditions which, contrary to good faith, create to the detriment of the consumer a significant and unjustified imbalance between his or her rights and obligations are unfair under the Unfair Competition Act (art. 8 LCD (new tab)). Put simply, these are clauses that clearly favour the business without justification. The law does not list them: only a civil court can decide. A questionable clause can also be reported to the State Secretariat for Economic Affairs (SECO) or to a consumer association.

An unfavourable clause is not necessarily unfair: in 2017, the Geneva Court of Justice held that non-exchangeable reduced-fare train tickets did not breach art. 8 LCD (new tab).

Terminating early for just cause

According to the Federal Supreme Court, any long-term contract can be terminated early for just cause, even where the law does not regulate that type of contract (ATF 128 III 428 (new tab)). The threshold is high: continuing the contract must have become intolerable for the party terminating it, which the court assesses case by case and restrictively.

The courts of Neuchâtel and Vaud treat a gym membership as a contract that the law does not regulate (an “innominate” contract), which borrows in particular from the rules on leases. According to the Neuchâtel court, it therefore cannot be terminated at any time like a mandate, but it can be terminated for just cause.

Doorstep, street or telephone selling: 14 days to revoke

The Code of Obligations grants a right of revocation (art. 40a et seq. CO (new tab)) where all the following conditions are met:

• the contract concerns movable goods or a service intended for the customer’s personal or family use;
• the supplier is acting in the course of a professional or commercial activity;
• the amount the customer is to pay exceeds CHF 100.–;
• the customer was invited to enter into the contract at his or her workplace, in a dwelling or in its immediate vicinity, on public transport or in a public street, at a promotional event linked to an excursion, or by telephone (art. 40b CO (new tab)).

The customer cannot revoke if he or she expressly requested the negotiations (e.g. by inviting the seller to his or her home) or made the commitment at a market or trade fair stand (art. 40c CO (new tab)). Insurance contracts follow their own rules, set out in the Insurance Contract Act (art. 2a LCA (new tab)). By contrast, there is no general right of withdrawal for purchases made in a shop or online (see Purchases).

The 14-day time limit only starts to run once the customer has proposed or accepted the contract and has received dated information on his or her right of revocation, the form and time limit to be observed, and the supplier’s address. This information must be given in writing or in another form that leaves a written record (art. 40d (new tab) and 40e CO (new tab)). As long as this information is missing, the time limit does not run, and it is for the supplier to prove when it was given.

1. Inform the supplier that you are revoking the contract, identifying it clearly (date, subject matter). The law does not require any particular form.

2. However, it is up to you to prove that you acted in time: preferably send a registered letter. The time limit is met if the letter is handed in at the post office on the last day.

3. The parties return to each other what they have received. If you have used the item, you owe a reasonable rent; for a service, you reimburse the provider’s outlays and expenses. No other compensation is owed (art. 40f CO (new tab)).

Certain unsolicited selling practices are also unfair: using particularly aggressive sales methods, ignoring the asterisk in the telephone directory by which a person refuses advertising from businesses with which he or she has no business relationship (people not listed in the directory are protected in the same way), or making advertising calls without displaying a number listed in the directory (art. 3 para. 1 let. h, u and v LCD (new tab)).

Receiving an item you did not order

Sending an item that was not ordered is not an offer: the recipient does not have to pay for it, and is not obliged either to return it or to keep it, even if an invoice is enclosed. If the item was manifestly sent by mistake, the recipient must only inform the sender (art. 6a CO (new tab)).

Telecommunications: the Ombudscom conciliation body

In the event of a dispute with an operator (disputed bill, change to a subscription, unsolicited contract, value-added service), a customer who has not obtained satisfaction from the operator can refer the matter to Ombudscom, the conciliation body mandated by the Federal Office of Communications under the Telecommunications Act (art. 12c LTC (new tab)). The customer pays a fee of CHF 20.–, the operator bears the rest of the costs, and the proposed solution is not binding on the parties. The last contact with the operator must date back less than 12 months. The procedure is optional and does not interrupt the limitation period (see Time limits to remember).

Documentation and useful links

• Ombudscom – Telecommunications conciliation bodyWEB
• FRC – Getting helpWEB
• SECO – Unfair general terms and conditionsWEB

Which contracts are protected?

The LCC covers a loan or deferred payment granted to an individual for private purposes by a professional lender, or by a private individual lending through a crowdlending (peer-to-peer lending) platform. It also covers the leasing of movable property for private use (e.g. a car), where the lease instalments increase in the event of early termination, as well as credit cards and overdrafts that allow the balance to be repaid in instalments (art. 1 to 3 LCC (new tab)). It does not apply, in particular, to credits of less than CHF 500.– or more than CHF 80'000.–, nor to credits that are free of interest and charges or repayable within three months at most (art. 7 LCC (new tab)). Loans between family and friends are not covered either, unless they are made through such a platform: see Lending, guaranteeing, giving.

A written contract, failing which it is void

The contract must be in writing and you must receive a copy of it. It states in particular the net amount, the effective annual interest rate (the total cost of the credit, including interest and charges, expressed as an annual percentage), the right of revocation and, for a lease, a table of the amounts due in the event of early termination (art. 6 (new tab) and 9 (new tab) to 12 LCC (new tab)). If a mandatory item is missing or the maximum rate is exceeded, the contract is void. You then repay the amount received in monthly instalments until the agreed end date, without interest or charges; for a lease, you return the item and pay the lease instalments that have already fallen due (art. 15 LCC (new tab)).

The lender must check that you can pay

The lender must make sure that you could repay the credit within 36 months without encroaching on your subsistence minimum, even if the contract provides for a longer term. It must take into account your rent, your taxes and your other credits (art. 28 LCC (new tab)). For a lease, it is sufficient that you can pay the lease instalments without encroaching on that minimum, or that your assets guarantee their payment (art. 29 LCC (new tab)). For a credit card or an overdraft, the assessment is a summary one: the limit is set on the basis of the income and assets you declare, taking into account the credits reported to the Consumer Credit Information Office, and must be reviewed if your financial situation deteriorates (art. 30 LCC (new tab)).

If the lender seriously breaches these rules, it loses the entire credit, including interest and charges, and you can recover what you have already paid. A minor breach only causes it to lose the interest and charges (art. 32 LCC (new tab)).

Maximum interest rate

The effective annual interest rate may not exceed a cap calculated on the basis of SARON, the Swiss franc reference rate. The Federal Department of Justice and Police reviews it at least once a year (art. 14 LCC (new tab); art. 1 OLCC (new tab)). Since 1 January 2026, this cap has been 10% for a cash loan and 12% for an overdraft or a credit card (Federal Office of Justice press release (new tab)).

Lending money to a relative

A loan obliges the borrower to return as much as they received (art. 312 of the Code of Obligations, CO (new tab)). No particular form is required, but whoever claims repayment must prove that they handed over the money and that the parties had agreed it would be returned (art. 8 of the Civil Code, CC (new tab)). A gift is not presumed, but neither is a loan. Useful evidence includes: a signed document, a bank transfer with the reference “loan”, messages mentioning repayment, witnesses.

If no repayment date or period was agreed, the borrower has six weeks from the lender’s first demand (art. 318 CO (new tab)): so make your demand in writing. Between private individuals, interest is owed only if it was agreed (art. 313 CO (new tab)); a borrower in default must, however, pay default interest of 5% a year (see Rules common to all contracts).

Between spouses or cohabiting partners, loans and advances are often settled on separation: see the family law and divorce pages.

Watch out for the limitation period

Repayment becomes time-barred after ten years (art. 127 CO (new tab)). For a loan with no due date, this period does not run from the demand for repayment, but from the conclusion of the loan, plus six weeks: that is the first day on which the lender could have required repayment. The Federal Supreme Court confirmed this in a Geneva case (Federal Supreme Court judgment 4A_699/2011 of 22 December 2011 (new tab)). A loan granted on 1 March 2015 is thus time-barred in mid-April 2025, in the absence of any interruption, even if the lender never asked for anything.

A reminder letter does not interrupt the limitation period: this requires, in particular, an acknowledgement by the borrower (e.g. a part payment), debt enforcement proceedings or an application for conciliation (art. 135 CO (new tab)). Out of court, the borrower may also waive in writing the right to plead the limitation period, for ten years at most (art. 141 CO (new tab)). The general rules are set out under Time limits to remember.

The acknowledgement of debt

An acknowledgement of debt (reconnaissance de dette) signed by the borrower is valid even if it does not state the reason for the debt (art. 17 CO (new tab)). If signed before the limitation period has expired, it interrupts it and starts a new ten-year period. It also makes it possible to obtain the provisional setting aside of the objection (mainlevée provisoire) if the borrower files an objection to a payment order (art. 82 of the Debt Enforcement and Bankruptcy Act, LP (new tab); see the debt enforcement page). A written loan agreement for a specific sum in principle has the same effect if the loan is due and the borrower does not dispute having received the money; if the borrower disputes it, the lender must prove the payment.

Lending a home or a car

Making a flat or a car available free of charge to a relative is a loan for use (prêt à usage, art. 305 CO (new tab)). If no duration was agreed, it ends once the agreed use has been completed; if neither the purpose nor the duration was fixed, the lender may ask for the item back whenever they wish. The lender may also take it back earlier if it is used contrary to the agreement, damaged or lent to a third party, or if the lender has an urgent and unforeseen need for it (art. 309 (new tab) and 310 CO (new tab)).

Standing as guarantor for a relative

The guarantor undertakes to pay a relative’s debt (rent, credit) if the relative does not. The following are required, failing which the guarantee is void (art. 493 and 494 CO (new tab)):

• a written document stating in figures the maximum amount guaranteed;
• for a private individual, a public deed (notary) above CHF 2'000.–; up to that amount, the guarantor writes in their own hand the amount and, where applicable, the words “joint and several guarantor” (caution solidaire);
• for a married person or a registered partner, the written consent of the spouse or partner, at the latest at the time of signing.

The guarantor is never liable beyond the maximum amount. For a private individual, this amount in principle decreases by 3% a year and the guarantee expires after twenty years, except in particular for periodic payments such as rent (art. 500 (new tab) and 509 CO (new tab)). A simple guarantor (caution simple) can be called upon to pay only after the debtor’s bankruptcy, a composition moratorium (sursis concordataire), a definitive certificate of shortfall (acte de défaut de biens définitif) or the debtor’s move abroad if they can no longer be pursued in Switzerland, unless otherwise agreed (art. 495 CO (new tab)). A joint and several guarantor can be called upon as soon as the debtor in arrears has been asked to pay without success, or if the debtor is notoriously insolvent (art. 496 CO (new tab)). A guarantor who has paid can seek recovery from the debtor (art. 507 CO (new tab)).

An undertaking described as “co-debtor” or “co-tenant” may in fact be a guarantee, subject to the same formal requirements. The signatory’s own interest is an important indication: a parent who signs their child’s lease without living in the home may see their undertaking reclassified as a guarantee.

In Geneva: guaranteeing a relative’s rent

Under the Geneva Act protecting the guarantees provided by tenants (new tab) (LGFL), any guarantee in cash or securities, whether provided by the tenant or by a third party, must be deposited in a blocked account (the State deposit office or a bank). For housing, a simple guarantee (cautionnement simple) is allowed only at the tenant’s request, and the tenant may switch back to a deposit at any time; a joint and several guarantee is reserved for exclusively commercial leases, a restriction that the Federal Supreme Court has held to be valid. In 2025, in a Geneva case concerning a commercial lease, the Court also accepted that the judge ruling on the setting aside of the objection could consider that a third-party undertaking (porte-fort: a promise to compensate the landlord if the tenant fails to perform) does not validly guarantee a tenant’s obligations (ATF 151 III 538 (new tab)). See also the tenancy law page.

Giving to a relative

A gift from hand to hand (don manuel) is made simply by handing over the item. A promise to make a gift must be in writing and, for real estate, executed before a notary (art. 242 (new tab) and 243 CO (new tab)). A gift that has been made can be revoked in three cases only: a serious criminal offence by the recipient against the donor or someone close to the donor, a serious breach of the recipient’s legal duties towards the donor or the donor’s family, or failure without good reason to fulfil a condition attached to the gift. The donor must act within one year of learning of the ground for revocation, and recovers only the amount by which the recipient is still enriched (art. 249 and 251 CO (new tab)).

On the donor’s death, gifts made to a descendant to set them up in life or improve their situation (e.g. establishment costs, assignment of assets, cancellation of a debt) must in principle be brought into account in the division of the estate, i.e. counted as an advance on their share of the inheritance, unless expressly exempted; other gifts are brought into account only if the donor so intended (art. 626 CC (new tab)). In particular, the following may be reduced if they encroach on the compulsory portion (réserve, i.e. the share of the estate that the law guarantees to certain close relatives): gifts made in the five years before death, other than customary gifts, but also, whatever their date, gifts to set up a descendant that were exempted from being brought into account and gifts made to circumvent the compulsory portion (art. 527 CC (new tab)). Since 1 January 2023, only descendants, the spouse and the registered partner are entitled to a compulsory portion; parents no longer are. If the donor has concluded an inheritance contract (pacte successoral), a gift that goes beyond customary gifts and is inconsistent with that contract may also be challenged, unless the contract reserves it (art. 494 para. 3 CC (new tab)).

Documentation and useful links

• GE: Gift taxWEB
• GE: Estimating the gift taxWEB
• GE: Act protecting the guarantees provided by tenants (LGFL)WEB

The mandate, the default contract for services

Under a mandate, the service provider undertakes to manage a matter or to provide a service. Its rules apply to all services that are not governed by another type of contract provided for by law (art. 394 of the Code of Obligations, CO (new tab)). Remuneration is owed if it was agreed or if it is customary. A person who promises a piece of work, such as a repair, in principle concludes a contract for work and services: see Building work and repairs.

The service provider is answerable for the proper and faithful performance of the mandate (art. 398 CO (new tab)). The provider must perform it personally, unless you authorise a substitute, circumstances make this necessary or custom allows it. At your request, the provider must account to you at any time and hand over everything received in that capacity, in particular your documents (art. 400 CO (new tab)). You must reimburse the provider, with interest, for the advances and expenses incurred in properly performing the mandate (art. 402 CO (new tab)).

As a rule, the provider owes diligent efforts, not a result: coaching that does not lead to the job hoped for is not, in itself, poorly performed. A breach of the duty of care must be established; if it causes loss, damages may be claimed (see civil liability).

Contract concluded at your home, in the street or by telephone: a 14-day right of revocation may apply (see Subscriptions, doorstep selling and general terms).

Terminating at any time

The client may revoke the mandate, and the provider may give it up, at any time (art. 404 CO (new tab)). According to the settled case law of the Federal Supreme Court, this right is mandatory: a minimum-term or irrevocability clause can neither exclude nor limit it (ATF 115 II 464 (new tab)). In 2019, Parliament decided not to allow the parties to depart from it by contract.

Not all long-term contracts are mandates, however: cantonal practice, for example, treats a gym membership as a different type of contract, which cannot be terminated at any time (see Subscriptions).

Compensation for termination at an inopportune time

A party who ends the contract without a serious reason and at an inopportune time, i.e. at a moment that is unfavourable for the other party, must make good the loss that this timing causes the other party (art. 404 para. 2 CO (new tab)). Nothing is owed if the other party itself gave a serious reason to terminate: circumstances that make continuing the contract objectively unbearable or that destroy the relationship of trust.

Compensation is limited to the negative interest (intérêt négatif): arrangements made to perform the contract, other income the other party gave up. Lost profit, i.e. the remuneration expected until the agreed end date, is not compensated. The contract may fix this compensation by means of a penalty clause, i.e. a lump sum agreed in advance; such a clause is permitted, but the court must reduce an excessive penalty (art. 163 para. 3 CO (new tab)).

Private schools

The Federal Supreme Court classifies the contract with a private school as a mixed contract, in principle subject to the rules on mandates: both the parents and the school may end it at any time. Termination is, however, inopportune, and gives rise to compensation, if it occurs without a serious reason in the middle of a semester or after the re-enrolment deadline set by the school’s general terms. A penalty clause is permitted for this case. On the other hand, there is no inopportune termination if the school itself gave a serious reason to leave.

A Geneva example: parents had withdrawn their daughter at the end of September, disappointed that she had not joined the class of older children. The general terms made the current three-month term and the following two months payable, i.e. five months of school fees. The Court of First Instance (in French Tribunal de première instance) held that the parents had no serious reason and that the clause was not excessive. The Court of Justice upheld that judgment, and the Federal Supreme Court, which reviewed the case only for arbitrariness, then dismissed the parents’ appeal (Federal Supreme Court judgment 4D_64/2021 of 8 December 2021 (new tab)).

These rules were laid down for private schools. A day nursery, in particular a municipal or subsidised one, may be subject to other rules, which are not covered here.

Real estate brokerage

The broker points out an opportunity to conclude a contract or negotiates it, in return for a commission. The commission is owed only if the sale is concluded as a result of the broker’s intervention, once any condition precedent has been fulfilled (art. 413 CO (new tab)). The broker must prove this causal link: if the broker negotiated, it is enough that their efforts influenced the buyer’s decision, even remotely; if the broker merely pointed out the buyer, they must have been the first to name that buyer, and this must have brought the parties into contact.

An exclusivity clause that clearly grants the commission even if the buyer was found by another intermediary is in principle valid; an ambiguous clause is construed against the broker who drafted it (the Federal Supreme Court left open the case of a broker who remained completely inactive). A brokerage contract, even an exclusive one, may nevertheless be revoked at any time, like a mandate (art. 404 (new tab) and 412 para. 2 CO (new tab)). The broker loses any right to a commission if they act in the interest of the other party in disregard of their obligations (art. 415 CO (new tab)). The court may reduce an excessive commission for the sale of real property, but not for finding a home to rent (art. 417 CO (new tab)).

Marriage agencies and moving into a nursing home

A contract with a marriage agency is valid only if made in writing, with mandatory particulars (services, price, client’s rights). It comes into force for the client only 14 days after a signed copy has been handed over: during this period, the client may withdraw in writing and the agency may not accept any payment. The court may reduce excessive remuneration (art. 406a et seq. CO (new tab)).

Where a person who lacks capacity of judgment lives in a nursing home (in French EMS) on a long-term basis, a written contract must set out the services and their cost, taking the person’s wishes into account as far as possible. Their representation for concluding, amending or terminating this contract follows the rules applicable to medical treatment (art. 382 of the Civil Code, CC (new tab); see curatorships). In Geneva, according to information from the State (new tab) (June 2026), the board and lodging charge ranges from CHF 190.– to CHF 273.– per day depending on the home, plus a contribution to care costs of CHF 10.– per day; the Supplementary Benefits Service (in French Service des prestations complémentaires) can make up for insufficient resources.

An agreement made orally or by message is binding

Under art. 1 of the Code of Obligations (new tab) (CO), a contract is concluded as soon as the parties have expressed matching intentions to be bound, whether expressly or tacitly. An agreement made orally, by email or on WhatsApp is therefore in principle just as binding as a signed contract; it still has to be proved.

When written form or a notary is required

A particular form is mandatory only where the law requires it, and a contract that does not comply with it is then not valid (art. 11 CO (new tab)). Written form requires the signature of each person who undertakes an obligation (art. 13 CO (new tab)), either by hand or by qualified electronic signature with a qualified electronic time stamp (art. 14 CO (new tab)): a simple email is not enough. The main cases are:

• sale of real estate: public deed drawn up by a notary (art. 216 CO (new tab));
• promise to make a gift: written form, public deed for real estate (art. 243 CO (new tab));
• guarantee (cautionnement) given by an individual: public deed or, up to CHF 2'000.–, the amount written by hand by the guarantor, and in principle the written consent of the spouse or registered partner (art. 493 (new tab) and 494 CO (new tab));
• consumer credit: written contract (art. 9 of the Federal Act on Consumer Credit, LCC (new tab)).

See the sections Lending, guaranteeing, giving and Consumer credit and leasing. The parties may also agree on a form themselves, e.g. a signed acceptance required by the quote or the general terms and conditions: they are then in principle bound only once that form has been complied with (art. 16 CO (new tab)).

Void clauses

A contract is void if its subject matter is impossible, unlawful or contrary to public morals. If only some clauses are defective, only those clauses fall away, unless it must be assumed that the contract would not have been concluded without them (art. 20 CO (new tab)). For unfair clauses in general terms and conditions, see Subscriptions, doorstep selling and general terms.

Proving what was agreed

Under art. 8 of the Civil Code (new tab) (CC), a person who claims performance must prove the contract and its content. A few good habits:

• keep the quote, order, confirmation and general terms and conditions;
• confirm an oral agreement by email (price, deadlines, scope of the work);
• keep messages, with their date and sender, and dated photos;
• pay by bank transfer or insist on a receipt (art. 88 CO (new tab)).

The other party is late or fails to perform

A party who fails to perform, or performs defectively, must make good the damage, unless it proves that no fault is attributable to it (art. 97 CO (new tab)). In the event of delay in a contract where each party owes performance (sale, building work, services), the procedure is as follows:

1. Formal notice (in French mise en demeure). If a date was agreed, the other party is in default as soon as it has passed. Otherwise, you must demand the performance due (art. 102 CO (new tab)).

2. Grace period. Set the other party a reasonable time limit to perform (art. 107 CO (new tab)). This time limit is unnecessary if the other party’s conduct shows that it would serve no purpose (e.g. a clear refusal), if late performance is no longer of any use to you, or if the contract required performance at exactly a fixed date (art. 108 CO (new tab)).

3. Immediate choice. Once the time limit has expired, you can still demand performance plus damages for the delay. To waive performance and claim damages for non-performance, or to withdraw from the contract, you must declare this immediately.

A party who withdraws from the contract may refuse performance, recover what it has paid and claim compensation for the damage caused by the contract coming to an end, unless the other party proves that it was not at fault (art. 109 CO (new tab)). Calculating the damage: see the civil liability page; recovering a sum of money: see the debt enforcement page.

A formal notice does not interrupt the limitation period (see Time limits to remember).

Withholding your own payment

In a contract where each party owes performance, a party claiming what it is owed must have performed its own obligation or offer to do so (art. 82 CO (new tab)). As long as the seller has not delivered or the contractor has not finished, you can in principle withhold your payment, unless you were required to pay in advance (e.g. an agreed deposit). Say so in writing: before a court, this defence must be raised expressly. The amount remains due once the performance has been rendered.

Getting out of a contract: error, fraud, duress, unfair advantage

A contract is not binding on the party who concluded it:

• under a fundamental error (as to the subject matter, the extent of the performance, or a fact that could, in good faith, be regarded as a necessary element of the contract), but not under an error as to motive alone (art. 23 (new tab) and 24 CO (new tab));
• after being deceived by the other party (fraud), e.g. about a defect knowingly concealed, even if the error was not fundamental (art. 28 CO (new tab));
• under the influence of a well-founded fear unlawfully instilled by the other party or by a third party (art. 29 CO (new tab)).

You must declare to the other party that you will not uphold the contract, or claim back what you have paid, within the one-year time limit mentioned below; failing this, the contract is deemed ratified (art. 31 CO (new tab)).

Unfair advantage (lésion). If one party has obtained a manifest imbalance between the respective performances by exploiting the other party’s distress, thoughtlessness or inexperience, the injured party may rescind the contract and recover what it has paid (art. 21 CO (new tab)); a merely high price is not enough.

Forfeiture, limitation and contractual time limits

Not all time limits have the same effect:

• a forfeiture time limit (notice of defects, baggage complaint, action against an airline, builders’ lien) extinguishes the right as soon as it has passed. A reminder, debt enforcement proceedings or referral to an ombudsman do not preserve it: you must carry out the act required by law (notice, complaint, registration in the land register, request for conciliation or court action);
• a limitation period (claims, warranty actions) can be interrupted, and a new period then starts to run (see below);
• a contractual time limit, set by the general terms of a tour operator or a platform (e.g. 72 hours with Airbnb to report a problem found in the accommodation), applies in addition to the statutory time limits. The law nevertheless prohibits certain time limits that are too short, e.g. a notice period of less than 60 days for an immovable work or, for an item bought from a professional for personal or family use, a warranty period of less than two years (one year for a second-hand item).

Reporting a defect or making a complaint

Details: Purchases: warranty and defects; Building work and repairs; Travel and holidays.

Going back on a commitment

Details: Subscriptions, doorstep selling and general terms; Consumer credit and leasing; Lending, guaranteeing, giving; Services: coaches, fiduciaries, private schools; Rules common to all contracts.

Taking legal action or safeguarding your rights

Limitation of claims

Payment of an invoice or repayment of a loan cannot be demanded indefinitely. Once the limitation period has expired, the debtor may refuse to pay, provided he or she invokes it: the court does not raise limitation of its own motion (art. 142 CO (new tab)).

• 10 years: this is the general rule, e.g. for the repayment of a loan (art. 127 CO (new tab));
• 5 years: rents, interest and other periodic payments, craftsmen’s work, goods supplied by retailers, medical care, services of lawyers and notaries, salaries (art. 128 CO (new tab)).

The period starts to run as soon as the claim is due, i.e. as soon as the creditor can demand payment (art. 130 CO (new tab)). For a loan with no repayment date, it therefore starts to run six weeks after the contract is concluded, and not from the first demand for repayment (see Lending, guaranteeing, giving).

Limitation is interrupted when the debtor acknowledges the debt, in particular by paying interest or making a part payment, or when the creditor starts debt enforcement proceedings, files a request for conciliation or brings a court action (art. 135 CO (new tab)). A new period then starts to run. If the debt has been acknowledged in a document, such as a signed acknowledgement of debt (reconnaissance de dette), or established by a judgment, the new period is always ten years (art. 137 CO (new tab)). A simple reminder or a formal notice (in French mise en demeure), even sent by registered mail, does not interrupt limitation.

Two written agreements avoid having to start proceedings for the sole purpose of saving the time limit:

• a waiver of limitation: once the period has started, the debtor declares in writing that he or she will not invoke it, for a maximum of ten years each time (art. 141 CO (new tab));
• an agreed suspension: limitation does not run during negotiations, mediation or other out-of-court proceedings, but only if the parties have agreed to this in writing (art. 134 para. 1 no. 8 CO (new tab)).

For a claim for damages outside a contract (tort) or after personal injury, other time limits apply: see the civil liability page.

Documentation and useful links

• FOJ: limitation periods in private law (revision in force since 2020)WEB
• Code of Obligations, art. 127 to 142 (limitation)WEB

M^e Jean-Philippe Anthonioz is available by appointment only.

If you would like further advice, please do not hesitate to contact the firm’s secretariat by telephone to arrange a meeting at a flat-fee rate. You can also reach the firm using the contact details and means below. You can also book an online appointment (new tab).

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