Section One: Obligations arising by Contract

Art. 1

1 The conclusion of a contract requires a mutual expression of intent by the parties.

2 The expression of intent may be express or implied.


Art. 2

1 Where the parties have agreed on all the essential terms, it is presumed that the contract will be binding notwithstanding any reservation on secondary terms.

2 In the event of failure to reach agreement on such secondary terms, the court must determine them with due regard to the nature of the transaction.

3 The foregoing is subject to the provisions governing the form of contracts.


Art. 3

1 A person who offers to enter into a contract with another person and sets a time limit for acceptance is bound by his offer until the time limit expires.

2 He is no longer bound if no acceptance has reached him on expiry of the time limit.


Art. 4

1 Where an offer is made in the offeree’s presence and no time limit for acceptance is set, it is no longer binding on the offeror unless the offeree accepts it immediately.

2 Contracts concluded by telephone are deemed to have been concluded in the parties’ presence where they or their agents communicated in person.


Art. 5

1 Where an offer is made in the offeree’s absence and no time limit for acceptance is set, it remains binding on the offeror until such time as he might expect a reply sent duly and promptly to reach him.

2 He may assume that his offer has been promptly received.

3 Where an acceptance sent duly and promptly is late in reaching the offeror and he does not wish to be bound by his offer, he must immediately inform the offeree.


Art. 6

Where the particular nature of the transaction or the circumstances are such that express acceptance cannot reasonably be expected, the contract is deemed to have been concluded if the offer is not rejected within a reasonable time.


Art. 6a2

1 The sending of unsolicited goods does not constitute an offer.

2 The recipient is not obliged to return or keep such goods.

3 Where unsolicited goods have obviously been sent in error, the recipient must inform the sender.

[2](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e148) Inserted by No I of the FA of 5 Oct. 1990, in force since 1 July 1991 ([AS **1991** 846](eli/oc/1991/846%5F846%5F846/en);[BBl **1986** II 354](eli/fga/1986/2%5F354%5F360%5F231/en)).


4. Non-binding offer, announcement of prices, display

Art. 7

1 An offeror is not bound by his offer if he has made express declaration to that effect or such a reservation arises from the circumstances or from the particular nature of the transaction.

2 The sending of tariffs, price lists and the like does not constitute an offer.

3 By contrast, the display of merchandise with an indication of its price does generally constitute an offer.


Art. 8

1 A person who publicly promises remuneration or a reward in exchange for the performance of an act must pay in accordance with his promise.

2 If he withdraws his promise before performance has been made, he must reimburse any person incurring expenditure in good faith on account of the promise up to the maximum amount promised unless he can prove that such person could not have provided the performance in question.


Art. 9

1 An offer is deemed not to have been made if its withdrawal reaches the offeree before or at the same time as the offer itself or, where it arrives subsequently, if it is communicated to the offeree before he becomes aware of the offer.

2 The same applies to a withdrawal of an acceptance.


III. Entry into effect of a contract concluded in the parties’ absence

Art. 10

1 A contract concluded in the parties’ absence takes effect from the time acceptance is sent.

2 Where express acceptance is not required, the contract takes effect from the time the offer is received.


I. Formal requirements and significance in general

Art. 11

1 The validity of a contract is not subject to compliance with any particular form unless a particular form is prescribed by law.

2 In the absence of any provision to the contrary on the significance and effect of formal requirements prescribed by law, the contract is valid only if such requirements are satisfied.


Art. 12

Where the law requires that a contract be done in writing, the requirement also applies to any amendment to the contract with the exception of supplementary collateral clauses that do not conflict with the original document.


Art. 13

1 A contract required by law to be in writing must be signed by all persons on whom it imposes obligations.

2 ...[3](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fn-d8e270)

[3](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e270) Repealed by Annex No 2 to the FA of 19 Dec. 2003 on Electronic Signatures, with effect from 1 Jan. 2005 ([AS **2004** 5085](eli/oc/2004/788/en);[BBl **2001** 5679](eli/fga/2001/889/en)).


Art. 14

1 Signatures must be appended by hand by the parties to the contract.

2 A signature reproduced by mechanical means is recognised as sufficient only where such reproduction is customarily permitted, and in particular in the case of signatures on large numbers of issued securities.

2bis An authenticated electronic signature combined with an authenticated time stamp within the meaning of the Federal Act of 18 March 2016[4](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fn-d8e301) on Electronic Signatures is deemed equivalent to a handwritten signature, subject to any statutory or contractual provision to the contrary.[5](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fn-d8e310)

3 The signature of a blind person is binding only if it has been duly certified or if it is proved that he was aware of the terms of the document at the time of signing.

[4](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e301) [SR **943.03**](eli/cc/2016/752/en)

[5](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e310) Inserted by Annex No 2 to the FA of 19 Dec. 2003 on Electronic Signatures ([AS **2004** 5085](eli/oc/2004/788/en);[BBl **2001** 5679](eli/fga/2001/889/en)). Amended by Annex No II 4 of the FA of 18 March 2016 on Electronic Signatures, in force since 1 Jan. 2017 ([AS **2016** 4651](eli/oc/2016/752/en);[BBl **2014** 1001](eli/fga/2014/171/en)).


Art. 15

Subject to the provisions relating to bills of exchange, any person unable to sign may make a duly certified mark by hand or give a certified declaration in lieu of a signature.


Art. 16

1 Where the parties agree to make a contract subject to formal requirements not prescribed by law, it is presumed that the parties do not wish to assume obligations until such time as those requirements are satisfied.

2 Where the parties stipulate a written form without elaborating further, the provisions governing the written form as required by law apply to satisfaction of that requirement.


Art. 17

An acknowledgment of debt is valid even if it does not state the cause of the obligation.


D. Interpretation of contracts, simulation

Art. 18

1 When assessing the form and terms of a contract, the true and common intention of the parties must be ascertained without dwelling on any inexact expressions or designations they may have used either in error or by way of disguising the true nature of the agreement.

2 A debtor may not plead simulation as a defence against a third party who has become his creditor in reliance on a written acknowledgment of debt.


Art. 19

1 The terms of a contract may be freely determined within the limits of the law.

2 Clauses that deviate from those prescribed by law are admissible only where the law does not prescribe mandatory forms of wording or where deviation from the legally prescribed terms would contravene public policy, morality or rights of personal privacy.


Art. 20

1 A contract is void if its terms are impossible, unlawful or immoral.

2 However, where the defect pertains only to certain terms of a contract, those terms alone are void unless there is cause to assume that the contract would not have been concluded without them.


Art. 21

1 Where there is a clear discrepancy between performance and consideration under a contract concluded as a result of one party’s exploitation of the other’s straitened circumstances, inexperience or thoughtlessness, the person suffering damage may declare within one year that he will not honour the contract and demand restitution of any performance already made.

2 The one-year period commences on conclusion of the contract.


Art. 22

1 Parties may reach a binding agreement to enter into a contract at a later date.

2 Where in the interests of the parties the law makes the validity of a contract conditional on observance of a particular form, the same applies to the agreement to conclude a contract.


Art. 23

A party labouring under a fundamental error when entering into a contract is not bound by that contract.


Art. 24

1 An error is fundamental in the following cases in particular:

1.

 where the party acting in error intended to conclude a contract different from that to which he consented;

2.

 where the party acting in error has concluded a contract relating to a subject matter other than the subject matter he intended or, where the contract relates to a specific person, to a person other than the one he intended;

3.

 where the party acting in error has promised to make a significantly greater performance or has accepted a promise of a significantly lesser consideration than he actually intended;

4.

 where the error relates to specific facts which the party acting in error considered in good faith to be a necessary basis for the contract.

2 However, where the error relates solely to the reason for concluding the contract, it is not fundamental.

3 Calculation errors do not render a contract any less binding, but must be corrected.


3. Invoking error contrary to good faith

Art. 25

1 A person may not invoke error in a manner contrary to good faith.

2 In particular, the party acting in error remains bound by the contract he intended to conclude, provided the other party accepts that contract.


Art. 26

1 A party acting in error and invoking that error to repudiate a contract is liable for any damage arising from the nullity of the agreement where the error is attributable to his own negligence, unless the other party knew or should have known of the error.

2 In the interests of equity, the court may award further damages to the person suffering damage.


Art. 27

Where an offer to enter into a contract or the acceptance of that offer has been incorrectly communicated by a messenger or other intermediary, the provisions governing error apply _mutatis mutandis_.


Art. 28

1 A party induced to enter into a contract by the fraud of the other party is not bound by it even if his error is not fundamental.

2 A party who is the victim of fraud by a third party remains bound by the contract unless the other party knew or should have known of the fraud at the time the contract was concluded.


Art. 29

1 Where a party has entered into a contract under duress from the other party or a third party, he is not bound by that contract.

2 Where the duress originates from a third party and the other party neither knew nor should have known of it, a party under duress who wishes to be released from the contract must pay compensation to the other party where equity so requires.


Art. 30

1 A party is under duress if, in the circumstances, he has good cause to believe that there is imminent and substantial risk to his own life, limb, reputation or property or to those of a person close to him.

2 The fear that another person might enforce a legitimate claim is taken into consideration only where the straitened circumstances of the party under duress have been exploited in order to extort excessive benefits from him.


IV. Defect of consent negated by ratification of the contract

Art. 31

1 Where the party acting under error, fraud or duress neither declares to the other party that he intends not to honour the contract nor seeks restitution for the performance made within one year, the contract is deemed to have been ratified.

2 The one-year period runs from the time that the error or the fraud was discovered or from the time that the duress ended.

3 The ratification of a contract made voidable by duress or fraud does not automatically exclude the right to claim damages.


Art. 32

1 The rights and obligations arising from a contract made by an agent in the name of another person accrue to the person represented, and not to the agent.

2 Where the agent did not make himself known as such when making the contract, the rights and obligations arising therefrom accrue directly to the person represented only if the other party must have inferred the agency relationship from the circumstances or did not care with whom the contract was made.

3 Where this is not the case, the claim must be assigned or the debt assumed in accordance with the principles governing such measures.


Art. 33

1 Where authority to act on behalf of another stems from relationships established under public law, it is governed by the public law provisions of the Confederation or the cantons.

2 Where such authority is conferred by means of the transaction itself, its scope is determined by that transaction.

3 Where a principal grants such authority to a third party and informs the latter thereof, the scope of the authority conferred on the third party is determined according to wording of the communication made to him.


Art. 34

1 A principal authorising another to act on his behalf by means of a transaction may restrict or revoke such authority at any time without prejudice to any rights acquired by those involved under existing legal relationships, such as an individual contract of employment, a partnership agreement or a mandate.[6](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fn-d8e622)

2 Any advance waiver of this right by the principal is void.

3 Where the represented party has expressly or de facto announced the authority he has conferred, he may not invoke its total or partial revocation against a third party acting in good faith unless he has likewise announced such revocation.

[6](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e622) Amended by No II Art. 1 No 1 of the FA of 25 June 1971, in force since 1 Jan. 1972 ([AS **1971** 1465](eli/oc/1971/1465%5F1461%5F1461/en);[BBl **1967** II 241](eli/fga/1967/2%5F241%5F249%5F177/en)). See also the Final and Transitional Provisions of Title X, at the end of this Code.


Art. 35

1 The authority conferred by means of a transaction is extinguished on the loss of capacity to act, bankruptcy, death, or declaration of presumed death of the principal or the agent, unless the contrary has been agreed or is implied by the nature of the transaction.[7](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fn-d8e654)

2 The same applies on the dissolution of a legal entity or a company or partnership entered in the commercial register.

3 The mutual personal rights of the parties are unaffected.

[7](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e654) Amended by Annex No 10 of the FA of 19 Dec. 2008 (Adult Protection, Law of Persons and Law of Children), in force since 1 Jan. 2013 ([AS **2011** 725](eli/oc/2011/114/en);[BBl **2006** 7001](eli/fga/2006/899/en)).


c. Return of the instrument conferring authority

Art. 36

1 Where an agent has been issued with an instrument setting out his authority, he must return it or deposit it with the court when that authority has ended.

2 Where the principal or his legal successors have omitted to insist on the return of such instrument, they are liable to bona fide third parties for any damage arising from that omission.


d. Time from which end of authority takes effect

Art. 37

1 Until such time as an agent becomes aware that his authority has ended, his actions continue to give rise to rights and obligations on the part of the principal or the latter’s legal successors as if the agent's authority still existed.

2 This does not apply in cases in which the third party is aware that the agent’s authority has ended.


Art. 38

1 Where a person without authority enters into a contract on behalf of a third party, rights and obligations do not accrue to the latter unless he ratifies the contract.

2 The other party has the right to request that the represented party ratify the contract within a reasonable time, failing which he is no longer bound by it.


Art. 39

1 Where ratification is expressly or implicitly refused, action may be brought against the person who acted as agent for compensation in respect of any damage caused by the extinction of the contract unless he can prove that the other party knew or should have known that he lacked the proper authority.

2 Where the agent is at fault, the court may order him to pay further damages on grounds of equity.

3 In all cases, claims for unjust enrichment are reserved.


Art. 40

The special provisions governing the authority of agents and governing bodies of companies and partnerships and of registered and other authorised agents are unaffected.


H. Revocation in door-to-door sales and similar contracts

Art. 40a8

1 The following provisions apply to contracts relating to goods and services intended for the customer’s personal or family use where:

a.

 the supplier of the goods or services acted in a professional or commercial capacity; and

b.

 the consideration from the buyer exceeds 100 francs.

2 These provisions do not apply to legal transactions that are entered into by financial institutions and banks within the framework of existing financial services contracts in accordance with the Financial Services Act of 15 June 2018[9](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fn-d8e780).[10](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fn-d8e789)

2bis For insurance policies, the provisions of the Insurance Policies Act of 2 April 1908[11](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fn-d8e807) apply.[12](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fn-d8e816)

3 In the event of significant change to the purchasing power of the national currency, the Federal Council shall adjust the sum indicated in para. 1 let. b accordingly.

[8](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e749) Inserted by No I of the FA of 5 Oct. 1990, in force since 1 July 1991 ([AS **1991** 846](eli/oc/1991/846%5F846%5F846/en);[BBl **1986** II 354](eli/fga/1986/2%5F354%5F360%5F231/en)).

[9](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e780) [SR **950.1**](eli/cc/2019/758/en)

[10](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e789) Amended by No II of the FA of 19 June 2020, in force since 1 Jan. 2022 ([AS **2020** 4969](eli/oc/2020/884/en);[BBl **2017** 5089](eli/fga/2017/1303/en)).

[11](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e807) [SR **221.229.1**](eli/cc/24/719%5F735%5F717/en)

[12](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e816) Inserted by No II of the FA of 19 June 2020, in force since 1 Jan. 2022 ([AS **2020** 4969](eli/oc/2020/884/en);[BBl **2017** 5089](eli/fga/2017/1303/en)).


Art. 40b13

A customer may revoke his offer to enter into a contract or his acceptance of such an offer if the transaction was proposed:

 a.[14](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fn-d8e864)

 at his place of work, on residential premises or in their immediate vicinity;

b.

 on public transport or on a public thoroughfare;

c.

 during a promotional event held in connection with an excursion or similar event;

 d.[15](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fn-d8e891)

 by telephone or by a comparable means of simultaneous verbal communication.

[13](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e840) Inserted by No I of the FA of 5 Oct. 1990, in force since 1 July 1991 ([AS **1991** 846](eli/oc/1991/846%5F846%5F846/en);[BBl **1986** II 354](eli/fga/1986/2%5F354%5F360%5F231/en)).

[14](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e864) Amended by No I of the FA of 18 June 1993, in force since 1 Jan. 1994 ([AS **1993** 3120](eli/oc/1993/3120%5F3120%5F3120/en); _BBl **1993** I 757_).

[15](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e891) Inserted by No I of the FA of 19 June 2015 (Revision of the right of revocation), in force since 1 Jan. 2016 ([AS **2015** 4107](eli/oc/2015/689/en);[BBl **2014** 921 ](eli/fga/2014/139/en)[2993](eli/fga/2014/549/en)).


Art. 40c16

The customer has no right of revocation:

a.

 if he expressly requested the contractual negotiations;

b.

 if he declared his offer or acceptance at a stand at a market or trade fair.

[16](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e917) Inserted by No I of the FA of 5 Oct. 1990 ([AS **1991** 846](eli/oc/1991/846%5F846%5F846/en);[BBl **1986** II 354](eli/fga/1986/2%5F354%5F360%5F231/en)). Amended by No I of the FA of 18 June 1993, in force since 1 Jan. 1994 ([AS **1993** 3120](eli/oc/1993/3120%5F3120%5F3120/en); _BBl **1993** I 757_).


Art. 40d17

1 The supplier must inform the customer in writing or in another form that may be evidenced by text of the latter’s right of revocation and of the form and time limit to be observed when exercising such right, and must provide his address.[18](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fn-d8e991)

2 Such information must be dated and permit identification of the contract in question.

3 The information must be transmitted in such a manner that the customer is aware of it when he proposes or accepts the contract.[19](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fn-d8e1015)

[17](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e960) Inserted by No I of the FA of 5 Oct. 1990 ([AS **1991** 846](eli/oc/1991/846%5F846%5F846/en);[BBl **1986** II 354](eli/fga/1986/2%5F354%5F360%5F231/en)). Amended by No I of the FA of 18 June 1993, in force since 1 Jan. 1994 ([AS **1993** 3120](eli/oc/1993/3120%5F3120%5F3120/en); _BBl **1993** I 757_).

[18](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e991) Amended by No I of the FA of 19 June 2015 (Revision of the right of revocation), in force since 1 Jan. 2016 ([AS **2015** 4107](eli/oc/2015/689/en);[BBl **2014** 921 ](eli/fga/2014/139/en)[2993](eli/fga/2014/549/en)).

[19](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e1015) Amended by No I of the FA of 19 June 2015 (Revision of the right of revocation), in force since 1 Jan. 2016 ([AS **2015** 4107](eli/oc/2015/689/en);[BBl **2014** 921 ](eli/fga/2014/139/en)[2993](eli/fga/2014/549/en)).


Art. 40e20

1 Revocation need not be in any particular form. The onus is on the customer to prove that he has revoked the contract within the time limit.[21](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fn-d8e1072)

2 The prescriptive period for revocation is 14 days and commences as soon as the customer:[22](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fn-d8e1093)

a.

 has proposed or accepted the contract; and

b.

 has become aware of the information stipulated in Art. 40_d_.

3 The onus is on the supplier to prove when the customer received the information stipulated in Art. 40_d_.

4 The time limit is observed if, on the last day of the prescriptive period, the customer informs the supplier of revocation or posts his written notice of revocation.[23](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fn-d8e1129)

[20](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e1041) Inserted by No I of the FA of 5 Oct. 1990 ([AS **1991** 846](eli/oc/1991/846%5F846%5F846/en);[BBl **1986** II 354](eli/fga/1986/2%5F354%5F360%5F231/en)). Amended by No I of the FA of 18 June 1993, in force since 1 Jan. 1994 ([AS **1993** 3120](eli/oc/1993/3120%5F3120%5F3120/en); _BBl **1993** I 757_).

[21](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e1072) Amended by No I of the FA of 19 June 2015 (Revision of the right of revocation), in force since 1 Jan. 2016 ([AS **2015** 4107](eli/oc/2015/689/en);[BBl **2014** 921 ](eli/fga/2014/139/en)[2993](eli/fga/2014/549/en)).

[22](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e1093) Amended by No I of the FA of 19 June 2015 (Revision of the right of revocation), in force since 1 Jan. 2016 ([AS **2015** 4107](eli/oc/2015/689/en);[BBl **2014** 921 ](eli/fga/2014/139/en)[2993](eli/fga/2014/549/en)).

[23](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e1129) Amended by No I of the FA of 19 June 2015 (Revision of the right of revocation), in force since 1 Jan. 2016 ([AS **2015** 4107](eli/oc/2015/689/en);[BBl **2014** 921 ](eli/fga/2014/139/en)[2993](eli/fga/2014/549/en)).


Art. 40f24

1 Where the customer has revoked the contract, the parties must provide restitution for any performance already made.

2 Where the customer has made use of the goods, he owes an appropriate rental payment to the supplier.

3 Where the supplier has rendered services to him, the customer must reimburse the supplier for outlays and expenses incurred in accordance with the provisions governing mandates (Art. 402).

4 The customer does not owe the supplier any further compensation.

[24](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e1153) Inserted by No I of the FA of 5 Oct. 1990, in force since 1 July 1991 ([AS **1991** 846](eli/oc/1991/846%5F846%5F846/en);[BBl **1986** II 354](eli/fga/1986/2%5F354%5F360%5F231/en)).


Art. 40g25

[25](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e1187) Inserted by No I of the FA of 5 Oct. 1990 ([AS **1991** 846](eli/oc/1991/846%5F846%5F846/en);[BBl **1986** II 354](eli/fga/1986/2%5F354%5F360%5F231/en)). Repealed by Annex No 5 to the Civil Jurisdiction Act of 24 March 2000, with effect from 1 Jan. 2001 ([AS **2000** 2355](eli/oc/2000/374/en);[BBl **1999** III 2829](eli/fga/1999/1%5F2829%5F2591%5F2427/en)).


Division One: General Provisions
Title One: Creation of Obligations
Section Two: Obligations in Tort
A. General principles
I. Conditions of liability

Art. 41

1 Any person who unlawfully causes damage to another, whether wilfully or negligently, is obliged to provide compensation.

2 A person who wilfully causes damage to another in an immoral manner is likewise obliged to provide compensation.


Division One: General Provisions
Title One: Creation of Obligations
Section Two: Obligations in Tort
A. General principles
II. Determining the damage

Art. 42

1 A person claiming damages must prove that damage occurred.

2 Where the exact value of the damage cannot be quantified, the court shall estimate the value at its discretion in the light of the normal course of events and the steps taken by the person suffering damage.

3 The costs of treating animals kept as pets rather than for investment or commercial purposes may be claimed within appropriate limits as a loss even if they exceed the value of the animal.[26](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fn-d8e1248)

[26](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e1248) Inserted by No II of the FA of 4 Oct. 2002 (Animals), in force since 1 April 2003 ([AS **2003** 463](eli/oc/2003/100/en); _BBl **2002** 3885_ _5418_).


Division One: General Provisions
Title One: Creation of Obligations
Section Two: Obligations in Tort
A. General principles
III. Determining compensation

Art. 43

1 The court determines the form and extent of the compensation provided for damage incurred, with due regard to the circumstances and the degree of culpability.

1bis Where an animal kept as a pet rather than for investment or commercial purposes has been injured or killed, the court may take appropriate account of its sentimental value to its owner or his dependants.[27](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fn-d8e1278)

2 Where damages are awarded in the form of periodic payments, the debtor must at the same time post security.

[27](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e1278) Inserted by No II of the FA of 4 Oct. 2002 (Animals), in force since 1 April 2003 ([AS **2003** 463](eli/oc/2003/100/en); _BBl **2002** 3885_ _5418_).


Division One: General Provisions
Title One: Creation of Obligations
Section Two: Obligations in Tort
A. General principles
IV. Grounds for reducing compensation

Art. 44

1 Where the person suffering damage consented to the harmful act or circumstances attributable to him helped give rise to or compound the damage or otherwise exacerbated the position of the party liable for it, the court may reduce the compensation due or even dispense with it entirely.

2 The court may also reduce the compensation award in cases in which the damage was caused neither wilfully nor by gross negligence and where payment of such compensation would leave the liable party in financial hardship.


Division One: General Provisions
Title One: Creation of Obligations
Section Two: Obligations in Tort
A. General principles
V. Special cases
1. Homicide and personal injury
a. Damages for homicide

Art. 45

1 In a case of homicide, compensation must cover all expenses arising and in particular the funeral costs.

2 Where death did not occur immediately, the compensation must also include the costs of medical treatment and losses arising from inability to work.

3 Where others are deprived of their means of support as a result of homicide, they must also be compensated for that loss.


Division One: General Provisions
Title One: Creation of Obligations
Section Two: Obligations in Tort
A. General principles
V. Special cases
1. Homicide and personal injury
b. Damages for personal injury

Art. 46

1 In the event of personal injury, the victim is entitled to reimbursement of expenses incurred and to compensation for any total or partial inability to work and for any loss of future earnings.

2 Where the consequences of the personal injury cannot be assessed with sufficient certainty at the time the award is made, the court may reserve the right to amend the award within two years of the date on which it was made.


Division One: General Provisions
Title One: Creation of Obligations
Section Two: Obligations in Tort
A. General principles
V. Special cases
1. Homicide and personal injury
c. Satisfaction

Art. 47

In cases of homicide or personal injury, the court may award the victim of personal injury or the dependants of the deceased an appropriate sum by way of satisfaction.


Division One: General Provisions
Title One: Creation of Obligations
Section Two: Obligations in Tort
A. General principles
V. Special cases
2. ...

Art. 4828

[28](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e1358) Repealed by Art. 21 para. 1 of the FA of 30 Sept. 1943 on Unfair Competition, with effect from 1 March 1945 (BS**2** 951).


Division One: General Provisions
Title One: Creation of Obligations
Section Two: Obligations in Tort
A. General principles
V. Special cases
3. Injury to personality rights

Art. 4929

1 Any person whose personality rights are unlawfully infringed is entitled to a sum of money by way of satisfaction provided this is justified by the seriousness of the infringement and no other amends have been made.

2 The court may order that satisfaction be provided in another manner instead of or in addition to monetary compensation.

[29](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e1373) Amended by No II 1 of the FA of 16 Dec. 1983, in force since 1 July 1985 ([AS **1984** 778](eli/oc/1984/778%5F778%5F778/en); _BBl **1982** II 661_).


Division One: General Provisions
Title One: Creation of Obligations
Section Two: Obligations in Tort
A. General principles
VI. Multiple liable parties
1. In tort

Art. 50

1 Where two or more persons have together caused damage, whether as instigator, perpetrator or accomplice, they are jointly and severally liable to the person suffering damage.

2 The court determines at its discretion whether and to what extent they have right of recourse against each other.

3 Abettors are liable in damages only to the extent that they received a share in the gains or caused damage due to their involvement.


Division One: General Provisions
Title One: Creation of Obligations
Section Two: Obligations in Tort
A. General principles
VI. Multiple liable parties
2. On different legal grounds

Art. 51

1 Where two or more persons are liable for the same damage on different legal grounds, whether under tort law, contract law or by statute, the provision governing recourse among persons who have jointly caused damage is applicable _mutatis mutandis_.

2 As a rule, compensation is provided first by those who are liable in tort and last by those who are deemed liable by statutory provision without being at fault or in breach of contractual obligation.


VII. Self-defence, necessity, legitimate use of force

Art. 52

1 Where a person has acted in self-defence, he is not liable to pay compensation for damage caused to the person or property of the aggressor.

2 A person who damages the property of another in order to protect himself or another person against imminent damage or danger must pay damages at the court’s discretion.

3 A person who uses force to protect his rights is not liable in damages if in the circumstances the assistance of the authorities could not have been obtained in good time and such use of force was the only means of preventing the loss of his rights or a significant impairment of his ability to exercise them.


Division One: General Provisions
Title One: Creation of Obligations
Section Two: Obligations in Tort
A. General principles
VIII. Relationship with criminal law

Art. 53

1 When determining fault or lack of fault and capacity or incapacity to consent, the court is not bound by the provisions governing criminal capacity nor by any acquittal in the criminal court.

2 The civil court is likewise not bound by the verdict in the criminal court when determining fault and assessing compensation.


B. Liability of persons lacking capacity to consent

Art. 54

1 On grounds of equity, the court may also order a person who lacks capacity to consent to provide total or partial compensation for the damage he has caused.

2 A person who has temporarily lost his capacity to consent is liable for any damage caused when in that state unless he can prove that said state arose through no fault of his own.


Division One: General Provisions
Title One: Creation of Obligations
Section Two: Obligations in Tort
C. Liability of employers

Art. 55

1 An employer is liable for the damage caused by his employees or ancillary staff in the performance of their work unless he proves that he took all due care to avoid a damage of this type or that the damage would have occurred even if all due care had been taken.[30](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fn-d8e1482)

2 The employer has a right of recourse against the person who caused the damage to the extent that such person is liable in damages.

[30](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e1482) Amended by No II Art. 1 No 2 of the FA of 25 June 1971, in force since 1 Jan. 1972 ([AS **1971** 1465](eli/oc/1971/1465%5F1461%5F1461/en);[BBl **1967** II 241](eli/fga/1967/2%5F241%5F249%5F177/en)). See also the Final and Transitional Provisions of Title X, at the end of this Code.


Division One: General Provisions
Title One: Creation of Obligations
Section Two: Obligations in Tort
D. Liability for animals
I. Damages

Art. 56

1 In the event of damage caused by an animal, its keeper is liable unless he proves that in keeping and supervising the animal he took all due care or that the damage would have occurred even if all due care had been taken.

2 He has a right of recourse if the animal was provoked either by another person or by an animal belonging to another person.

3 ...[31](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fn-d8e1519)

[31](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e1519) Repealed by Art. 27 No 3 of the FA of 20 June 1986 on Hunting, with effect from 1 April 1988 ([AS **1988** 506](eli/oc/1988/506%5F506%5F506/en);[BBl **1983** II 1197](eli/fga/1983/2%5F1197%5F1229%5F1169/en)).


Division One: General Provisions
Title One: Creation of Obligations
Section Two: Obligations in Tort
D. Liability for animals
II. Seizure of animals

Art. 57

1 A person in possession of a plot of land is entitled to seize animals belonging to another which cause damage on that land and take them into his custody as security for his claim for compensation or even to kill them, where justified by the circumstances.

2 He nonetheless has an obligation to notify the owner of such animals without delay or, if the owner is not known to him, to take the necessary steps to trace the owner.


Division One: General Provisions
Title One: Creation of Obligations
Section Two: Obligations in Tort
E. Liability of property owners
I. Damages

Art. 58

1 The owner of a building or any other structure is liable for any damage caused by defects in its construction or design or by inadequate maintenance.

2 He has a right of recourse against persons liable to him in this regard.


Division One: General Provisions
Title One: Creation of Obligations
Section Two: Obligations in Tort
E. Liability of property owners
II. Safety measures

Art. 59

1 A person who is at risk of suffering damage due to a building or structure belonging to another may insist that the owner take the necessary steps to avert the danger.

2 Orders given by the police for the protection of persons and property are unaffected.


F. Liability in respect of cryptographic keys

Art. 59a32

1 The owner of a cryptographic key used to generate electronic signatures or seals is liable to third parties for any damage they have suffered as a result of relying on a valid certificate issued by a provider of certification services within the meaning of the Federal Act of 18 March 2016[33](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fn-d8e1612) on Electronic Signatures.

2 The owner is absolved of liability if he can satisfy the court that he took all the security precautions that could reasonably be expected in the circumstances to prevent misuse of the cryptographic key.

3 The Federal Council defines the security precautions to be taken pursuant to paragraph 2.

[32](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e1582) Inserted by Annex No 2 to the FA of 19 Dec. 2003 on Electronic Signatures ([AS **2004** 5085](eli/oc/2004/788/en);[BBl **2001** 5679](eli/fga/2001/889/en)). Amended by Annex No II 4 of the FA of 18 March 2016 on Electronic Signatures, in force since 1 Jan. 2017 ([AS **2016** 4651](eli/oc/2016/752/en);[BBl **2014** 1001](eli/fga/2014/171/en)).

[33](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e1612) [SR **943.03**](eli/cc/2016/752/en)


Division One: General Provisions
Title One: Creation of Obligations
Section Two: Obligations in Tort
G. Prescription34

Art. 60

1 The right to claim damages or satisfaction prescribes three years from the date on which the person suffering damage became aware of the loss, damage or injury and of the identity of the person liable for it but in any event ten years after the date on which the harmful conduct took place or ceased.[35](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fn-d8e1658)

1bis In cases death or injury, the right to claim damages or satisfaction prescribes three years from the date on which the person suffering damage became aware of the damage and of the identity of person liable for it, but in any event twenty years after the date on which the harmful conduct took place or ceased.[36](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fn-d8e1676)

2 If the person liable has committed a criminal offence through his or her harmful conduct, then notwithstanding the foregoing paragraphs the right to damages or satisfaction prescribes at the earliest when the right to prosecute the offence becomes time-barred. If the right to prosecute is no longer liable to become time-barred because a first instance criminal judgment has been issued, the right to claim damages or satisfaction prescribes at the earliest three years after notice of the judgment is given.[37](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fn-d8e1694)

3 Where the tort has given rise to a claim against the person suffering damage, he may refuse to satisfy the claim even if his own claim in tort is time-barred.

[35](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e1658) Amended by No I of the FA of 15 June 2018 (Revision of the Law on Prescription), in force since 1 Jan. 2020 ([AS **2018** 5343](eli/oc/2018/807/en);[BBl **2014** 235](eli/fga/2014/65/en)).

[36](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e1676) Inserted by No I of the FA of 15 June 2018 (Revision of the Law on Prescription), in force since 1 Jan. 2020 ([AS **2018** 5343](eli/oc/2018/807/en);[BBl **2014** 235](eli/fga/2014/65/en)).

[37](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e1694) Amended by No I of the FA of 15 June 2018 (Revision of the Law on Prescription), in force since 1 Jan. 2020 ([AS **2018** 5343](eli/oc/2018/807/en);[BBl **2014** 235](eli/fga/2014/65/en)).


H. Liability of civil servants and public officials38

Art. 61

1 The Confederation and the cantons may by way of legislation enact provisions that deviate from those of this Section to govern the liability of civil servants and public officials to pay damages or satisfaction for any damage they cause in the exercise of their duties.

2 The provisions of this Section may not, however, be modified by cantonal legislation in the case of commercial duties performed by civil servants or public officials.


Section Three: Obligations deriving from Unjust Enrichment

Art. 62

1 A person who has enriched himself without just cause at the expense of another is obliged to make restitution.

2 In particular, restitution is owed for money benefits obtained for no valid reason whatsoever, for a reason that did not transpire or for a reason that subsequently ceased to exist.


II. Payment in satisfaction of a non-existent obligation

Art. 63

1 A person who has voluntarily satisfied a non-existent debt has a right to restitution of the sum paid only if he can prove that he paid it in the erroneous belief that the debt was owed.

2 Restitution is excluded where payment was made in satisfaction of a debt that has prescribe or of a moral obligation.

3 The provisions of federal debt collection and bankruptcy law governing the right to the restitution of payments made in satisfaction of non-existent claims are unaffected.


I. Obligations of the unjustly enriched party

Art. 64

There is no right of restitution where the recipient can show that he is no longer enriched at the time the claim for restitution is brought, unless he alienated the money benefits in bad faith or in the certain knowledge that he would be bound to return them.


Art. 65

1 The recipient is entitled to reimbursement of necessary and useful expenditures, although where the unjust enrichment was received in bad faith, the reimbursement of useful expenditures must not exceed the amount of added value as at the time of restitution.

2 He is not entitled to any compensation for other expenditures, but where no such compensation is offered to him, he may, before returning the property, remove anything he has added to it provided this is possible without damaging it.


Art. 66

No right to restitution exists in respect of anything given with a view to producing an unlawful or immoral outcome.


Art. 67

1 The right to claim restitution for unjust enrichment prescribes three years after the date on which the person suffering damage learned of his or her claim and in any event ten years after the date on which the claim first arose.[39](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fn-d8e1821)

2 Where the unjust enrichment consists of a claim against the person suffering damage, he or she may refuse to satisfy the claim even if his or her own claim for restitution has prescribed.

[39](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e1821) Amended by No I of the FA of 15 June 2018 (Revision of the Law on Prescription), in force since 1 Jan. 2020 ([AS **2018** 5343](eli/oc/2018/807/en);[BBl **2014** 235](eli/fga/2014/65/en)).


Division One: General Provisions
Title Two: Effect of Obligations
Section One: Performance of Obligations
A. General principles
I. Performance by the obligor in person

Art. 68

An obligor is not obliged to discharge his obligation in person unless so required by the obligee.


Division One: General Provisions
Title Two: Effect of Obligations
Section One: Performance of Obligations
A. General principles
II. Object of performance
1. Part payment

Art. 69

1 A creditor may refuse partial payment where the total debt is established and due.

2 If the creditor wishes to accept part payment, the debtor may not refuse to settle the part of the debt that he acknowledges is due.


Division One: General Provisions
Title Two: Effect of Obligations
Section One: Performance of Obligations
A. General principles
II. Object of performance
2. Indivisible performance

Art. 70

1 Where indivisible performance is due to several obligees, the obligor must make performance to all of them jointly, and each obligee may demand that performance be made to all of them jointly.

2 Where indivisible performance is due by several obligors, each of them has an obligation to make performance in full.

3 Unless circumstances dictate otherwise, an obligor who has satisfied the obligee may then claim proportionate compensation from the other obligors and to that extent the claim of the satisfied obligee passes to him.


Division One: General Provisions
Title Two: Effect of Obligations
Section One: Performance of Obligations
A. General principles
II. Object of performance
3. Debt of generic object

Art. 71

1 If the object owed is defined only in generic terms, the obligor may choose what object is given in repayment unless otherwise stipulated under the legal relationship.

2 However, the obligor must not offer an object of less-than-average quality.


4. Obligations involving choice of performance

Art. 72

Where an obligation may be discharged by one of several alternative types of performance, the obligor may choose which performance to make unless otherwise stipulated under the legal relationship.


Division One: General Provisions
Title Two: Effect of Obligations
Section One: Performance of Obligations
A. General principles
II. Object of performance
5. Interest

Art. 73

1 Where an obligation involves the payment of interest but the rate is not set by contract, law or custom, interest is payable at the rate of 5% per annum.

2 Public law provisions governing abusive interest charges are not affected.


Division One: General Provisions
Title Two: Effect of Obligations
Section One: Performance of Obligations
B. Place of performance

Art. 74

1 The place of performance is determined by the intention of the parties as stated expressly or evident from the circumstances.

2 Except where otherwise stipulated, the following principles apply:

1.

 pecuniary debts must be paid at the place where the creditor is resident at the time of performance;

2.

 where a specific object is owed, it must be delivered at the place where it was located when the contract was entered into;

3.

 other obligations must be discharged at the place where the obligor was resident at the time they arose.

3 Where the obligee may require performance of an obligation at his domicile but this has changed since the obligation arose, thereby significantly hindering performance by the obligor, the latter is entitled to render performance at the original domicile.


Division One: General Provisions
Title Two: Effect of Obligations
Section One: Performance of Obligations
C. Time of performance
I. Open-ended obligations

Art. 75

Where no time of performance is stated in the contract or evident from the nature of the legal relationship, the obligation may be discharged or called in immediately.


Division One: General Provisions
Title Two: Effect of Obligations
Section One: Performance of Obligations
C. Time of performance
II. Obligations subject to time limit
1. Monthly time limits

Art. 76

1 A time limit expressed as the beginning or end of a month means the first or last day of the month respectively.

2 A time limit expressed as the middle of the month means the fifteenth day of that month.


Division One: General Provisions
Title Two: Effect of Obligations
Section One: Performance of Obligations
C. Time of performance
II. Obligations subject to time limit
2. Other time limits

Art. 77

1 Where an obligation must be discharged or some other transaction accomplished within a certain time limit subsequent to conclusion of the contract, the time limit is defined as follows:

1.

 where the time limit is expressed as a number of days, performance falls due on the last thereof, not including the date on which the contract was concluded, and where the number stipulated is eight or fifteen days, this means not one or two weeks but a full eight or fifteen days;

2.

 where the time limit is expressed as a number of weeks, performance falls due in the last week of the period on the same day of the week as the one on which the contract was concluded;

3.

 where the time limit is expressed as a number of months or as a period comprising several months (a year, half-year or quarter), performance falls due in the last month of the period on the same day of the month as the one on which the contract was concluded or, where the last month of the period contains no such day, on the last day of that month.

 The term ‘half-month’ has the same meaning as a time limit of fifteen days; if the time limit is expressed as a period of one or more months plus one half-month, the fifteen days are counted last.

2 Time limits are calculated in the same manner when stipulated as running from a date other than the date on which the contract was concluded.

3 Where an obligation must be discharged before a specified time limit, performance must occur before that time expires.


Division One: General Provisions
Title Two: Effect of Obligations
Section One: Performance of Obligations
C. Time of performance
II. Obligations subject to time limit
3. Sundays and public holidays

Art. 78

1 Where the time of performance or the last day of a time limit falls on a Sunday or on a day officially recognised as a public holiday[40](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fn-d8e2010) at the place of performance, the time of performance or the last day of a time limit is deemed to be the next working day.

2 Any agreement to the contrary is unaffected.

[40](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e2010) In relation to the statutory time limits under federal law and the time limits fixed by authorities by virtue of federal law, Saturday is now regarded as equivalent to a public holiday (Art. 1 of the FA of 21 June 1963 on the Application of Limitation Periods to Saturdays;[SR **173.110.3**](eli/cc/1963/819%5F815%5F843/en)).


Division One: General Provisions
Title Two: Effect of Obligations
Section One: Performance of Obligations
C. Time of performance
III. Performance during business hours

Art. 79

Performance of the obligation must be made and accepted during normal business hours on the date stipulated.


Division One: General Provisions
Title Two: Effect of Obligations
Section One: Performance of Obligations
C. Time of performance
IV. Extension of the time limit

Art. 80

Where the agreed time limit for performance is extended, in the absence of an agreement to the contrary, the new time limit runs from the first day following expiry of the previous time limit.


Division One: General Provisions
Title Two: Effect of Obligations
Section One: Performance of Obligations
C. Time of performance
V. Early performance

Art. 81

1 Unless the terms or nature of the contract or the circumstances indicate that the parties intended otherwise, performance may be rendered before the date on which the time limit expires.

2 However, the obligor is not entitled to apply a discount unless that discount has been agreed or is sanctioned by custom.


Division One: General Provisions
Title Two: Effect of Obligations
Section One: Performance of Obligations
C. Time of performance
VI. In bilateral contracts
1. Order of performance

Art. 82

A party to a bilateral contract may not demand performance until he has discharged or offered to discharge his own obligation, unless the terms or nature of the contract allow him to do so at a later date.


Division One: General Provisions
Title Two: Effect of Obligations
Section One: Performance of Obligations
C. Time of performance
VI. In bilateral contracts
2. Allowance for unilateral insolvency

Art. 83

1 Where one party to a bilateral contract has become insolvent, in particular by virtue of bankruptcy proceedings or execution without satisfaction, and this deterioration in its financial position jeopardises the claim of the other party, the latter may withhold performance until security has been provided for the consideration.

2 He may withdraw from the contract if, on request, no such security is provided within a reasonable time.


Division One: General Provisions
Title Two: Effect of Obligations
Section One: Performance of Obligations
D. Payment
I. National currency

Art. 8441

1 Pecuniary debts must be discharged in legal tender of the currency in which the debt was incurred.

2 A debt expressed in a currency other than the national currency of the place of payment may be discharged in that national currency at the rate of exchange that applies on the day it falls due, unless literal performance is required by inclusion in the contract of the expression ‘actual currency’ or words to that effect.

[41](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e2086) Amended by Annex No 2 to the FA of 22 Dec. 1999 on Currency and Payment Instruments, in force since 1 May 2000 (_AS **2002** 1144_;[BBl **1999** 7258](eli/fga/1999/1%5F7258%5F6536%5F6201/en)).


Division One: General Provisions
Title Two: Effect of Obligations
Section One: Performance of Obligations
D. Payment
II. Allocation
1. Of part payments

Art. 85

1 A debtor may offset a part payment against the debt principal only if he is not in arrears with interest payments and expenses.

2 Where a creditor has received guarantees, pledges or other security for a portion of his claim, the debtor may not offset a part payment against that portion in preference to less well secured portions of the claim.


a. At the discretion of debtor or creditor

Art. 86

1 A debtor with several debts to the same creditor is entitled to state at the time of payment which debt he means to redeem.

2 In the absence of any statement from the debtor, the payment will be allocated to the debt indicated by the creditor in his receipt, unless the debtor objects immediately.


Division One: General Provisions
Title Two: Effect of Obligations
Section One: Performance of Obligations
D. Payment
II. Allocation
2. In the case of multiple debts
b. By law

Art. 87

1 Where no valid debt redemption statement has been made and the receipt does not indicate how the payment has been allocated, it is allocated to whichever debt is due or, if several are due, to the debt that first gave rise to enforcement proceedings against the debtor or, in the absence of such proceedings, to the debt that fell due first.

2 Where several debts fell due at the same time, the payment is offset against them proportionately.

3 If none of the debts is yet due, the payment is allocated to the one offering the least security for the creditor.


III. Receipt and return of borrower’s note

Art. 88

1 A debtor making a payment is entitled to demand a receipt and, provided the debt is fully redeemed, the return or annulment of the borrower’s note.

2 If the debt is not completely redeemed or the borrower’s note confers other rights on the creditor, the debtor is entitled to demand only a receipt and that a record of the payment be entered on the borrower’s note.


Art. 89

1 Where interest or other periodic payments are due, a creditor unreservedly issuing a receipt for a later periodic payment is presumed to have received all previous periodic payments.

2 If he issues a receipt for redemption of the debt principal, he is presumed to have received the interest.

3 The return of the borrower’s note to the debtor gives rise to a presumption that the debt has been redeemed.


3. Return of borrower’s note not possible

Art. 90

1 If the creditor claims to have lost the borrower’s note, on redeeming the debt, the debtor may insist that the creditor declare by public deed or notarised document that the borrower’s note has been annulled and the debt redeemed.

2 The provisions governing annulment of securities are reserved.


Division One: General Provisions
Title Two: Effect of Obligations
Section One: Performance of Obligations
E. Default of obligee
I. Requirement

Art. 91

The obligee is in default if he refuses without good cause to accept performance properly offered to him or to carry out such preparations as he is obliged to make and without which the obligor cannot render performance.


Division One: General Provisions
Title Two: Effect of Obligations
Section One: Performance of Obligations
E. Default of obligee
II. Effect
1. On obligations relating to objects
a. Right to deposit object

Art. 92

1 Where the obligee is in default, the obligor is entitled to deposit the object at the expense and risk of the obligee, thereby discharging his obligation.

2 The court decides which place should serve as depositary; however, merchandise may be deposited in a warehouse without need for a court decision.[42](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fn-d8e2227)

[42](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e2227) Amended by Annex No 5 to the Civil Jurisdiction Act of 24 March 2000, in force since 1 Jan. 2001 ([AS **2000** 2355](eli/oc/2000/374/en);[BBl **1999** III 2829](eli/fga/1999/1%5F2829%5F2591%5F2427/en)).


Division One: General Provisions
Title Two: Effect of Obligations
Section One: Performance of Obligations
E. Default of obligee
II. Effect
1. On obligations relating to objects
b. Right to sell

Art. 93

1 Where the characteristics of the object or the nature of the business preclude a deposit or the object is perishable or gives rise to maintenance costs or substantial storage costs, after having given formal warning to the obligee and with the court’s permission, the obligor may dispose of the object by open sale and deposit the sale proceeds.

2 Where the object has a quoted stock exchange or market price or its value is low in proportion to the costs involved, the sale need not be open and the court may authorise it without prior warning.


Division One: General Provisions
Title Two: Effect of Obligations
Section One: Performance of Obligations
E. Default of obligee
II. Effect
1. On obligations relating to objects
c. Right to take back the object

Art. 94

1 The obligor is entitled to take back the object deposited providing the obligee has not declared that he accepts it or providing the deposit has not had the effect of redeeming a pledge.

2 As soon as the object is taken back, the claim and all accessory rights become effective again.


Division One: General Provisions
Title Two: Effect of Obligations
Section One: Performance of Obligations
E. Default of obligee
II. Effect
2. On other obligations

Art. 95

Where the obligation does not relate to objects and the obligee is in default, the obligor may withdraw from the contract in accordance with the provisions governing default of the obligor.


F. Performance prevented for other reasons

Art. 96

The obligor is entitled to deposit his performance or to withdraw from the contract, as in the case of default on the part of the obligee, where performance cannot be rendered either to the obligee or to his representative for some other reason pertaining to the obligee or where through no fault of the obligor there is uncertainty as to the identity of the obligee.


Section Two: The Consequences of Non-Performance of Obligations

Art. 97

1 An obligor who fails to discharge an obligation at all or as required must make amends for the resulting damage unless he can prove that he was not at fault.

2 The procedure for debt enforcement is governed by the provisions of the Federal Act of 11 April 1889[43](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fn-d8e2308) on Debt Collection and Bankruptcy and the Civil Procedure Code of 19 December 2008[44](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fn-d8e2317) (CPC).[45](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fn-d8e2326)

[43](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e2308) [SR **281.1**](eli/cc/11/529%5F488%5F529/en)

[44](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e2317) [SR **272**](eli/cc/2010/262/en)

[45](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e2326) Amended by Annex 1 No II 5 of the Civil Procedure Code of 19 Dec. 2008, in force since 1 Jan. 2011 ([AS **2010** 1739](eli/oc/2010/262/en);[BBl **2006** 7221](eli/fga/2006/914/en)).


2. Obligation to act or refrain from action

Art. 98

1 Where the obligation is to take certain action, the obligee may without prejudice to his claims for damages obtain authority to perform the obligation at the obligor’s expense.

2 Where the obligation is to refrain from taking certain action, any breach of such obligation renders the obligor liable to make amends for the damage caused.

3 In addition, the obligee may request that the situation constituting a breach of the obligation be rectified and may obtain authority to rectify it at the obligor’s expense.


Art. 99

1 The obligor is generally liable for any fault attributable to him.

2 The scope of such liability is determined by the particular nature of the transaction and in particular is judged more leniently where the obligor does not stand to gain from the transaction.

3 In other respects, the provisions governing liability in tort apply_mutatis mutandis_ to a breach of contract.


Art. 100

1 Any agreement purporting to exclude liability for unlawful intent or gross negligence in advance is void.

2 At the discretion of the court, an advance exclusion of liability for minor negligence may be deemed void provided the party excluding liability was in the other party’s service at the time the waiver was made or the liability arises in connection with commercial activities conducted under official licence.

3 The specific provisions governing insurance policies are unaffected.


Art. 101

1 A person who delegates the performance of an obligation or the exercise of a right arising from a contractual obligation to an associate, such as a member of his household or an employee is liable to the other party for any damage the associate causes in carrying out such tasks, even if their delegation was entirely authorised.[46](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fn-d8e2403)

2 This liability may be limited or excluded by prior agreement.

3 If the obligee is in the obligor’s service or if the liability arises in connection with commercial activities conducted under official licence, any exclusion of liability by agreement may apply at most to minor negligence.

[46](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e2403) Amended by No II Art. 1 No 3 of the FA of 25 June 1971, in force since 1 Jan. 1972 ([AS **1971** 1465](eli/oc/1971/1465%5F1461%5F1461/en);[BBl **1967** II 241](eli/fga/1967/2%5F241%5F249%5F177/en)). See also the Final and Transitional Provisions of Title X, at the end of this Code.


Art. 102

1 Where an obligation is due, the obligor is in default as soon as he receives a formal reminder from the obligee.

2 Where a deadline for performance of the obligation has been set by agreement or as a result of a duly exercised right of termination reserved by one party, the obligor is automatically in default on expiry of the deadline.


Art. 103

1 An obligor in default is liable in damages for late performance and even for accidental damage.

2 He may discharge himself from such liability by proving that his default occurred through no fault of his own or that the object of performance would have suffered the accidental damage to the detriment of the obligee even if performance had taken place promptly.


Art. 104

1 A debtor in default on payment of a pecuniary debt must pay default interest of 5% per annum even where a lower rate of interest was stipulated by contract.

2 Where the contract envisages a rate of interest higher than 5%, whether directly or by agreement of a periodic bank commission, such higher rate of interest may also be applied while the debtor remains in default.

3 In business dealings, where the normal bank discount rate at the place of payment is higher than 5%, default interest may be calculated at the higher rate.


b. Debtor in default on payments of interest, annuities and gifts

Art. 105

1 A debtor in default on payment of interest, annuities or gifts is liable for default interest only as of the day on which enforcement proceedings are initiated or legal action is brought.

2 Any agreement to the contrary is assessed by the court in accordance with the provisions governing penalty clauses.

3 Default interest is never payable on default interest.


Art. 106

1 Where the value of the damage suffered by the creditor exceeds the default interest, the debtor is liable also for this additional damage unless he can prove that he is not at fault.

2 Where the additional damage can be anticipated, the court may award compensation for such damage in its judgment on the main claim.


Art. 107

1 Where the obligor under a bilateral contract is in default, the obligee is entitled to set an appropriate time limit for subsequent performance or to ask the court to set such time limit.

2 If performance has not been rendered by the end of that time limit, the obligee may compel performance in addition to suing for damages in connection with the delay or, provided he makes an immediate declaration to this effect, he may instead forego subsequent performance and either claim damages for non-performance or withdraw from the contract altogether.


Art. 108

No time limit need be set:

1.

 where it is evident from the conduct of the obligor that a time limit would serve no purpose;

2.

 where performance has become pointless to the obligee as a result of the obligor’s default;

3.

 where the contract makes it clear that the parties intended that performance take place at or before a precise point in time.


Art. 109

1 An obligee withdrawing from a contract may refuse the promised consideration and demand the return of any performance already made.

2 In addition he may claim damages for the lapse of the contract, unless the obligor can prove that he was not at fault.


Section Three: Obligations Involving Third Parties

Art. 110

A third party who satisfies the creditor is by operation of law subrogated to his rights:

1.

 if he redeems an object given in pledge for the debt of another and he owns said object or has a limited right in rem in it;

2.

 if the debtor notifies the creditor that the third party who is paying is to take the creditor’s place.


B. Guarantee of performance by third party

Art. 111

A person who gives an undertaking to ensure that a third party performs an obligation is liable in damages for non-performance by said third party.


C. Contracts conferring rights on third parties

Art. 112

1 A person who, acting in his own name, has entered into a contract whereby performance is due to a third party is entitled to compel performance for the benefit of said third party.

2 The third party or his legal successors have the right to compel performance where that was the intention of the contracting parties or is the customary practice.

3 In this case the obligee may no longer release the obligor from his obligations once the third party has notified the obligor of his intention to exercise that right.


Art. 113

Where an employer has taken out liability insurance and his employee has contributed at least half of the premiums, the employee has sole claim to the policy benefits.


Division One: General Provisions
Title Three: Extinction of Obligations
A. Extinction of accessory rights

Art. 114

1 Where a claim ceases to exist by virtue of being satisfied or in some other manner, all accessory rights such as guarantees and charges are likewise extinguished.

2 Interest that has accrued may be reclaimed only if that right is conferred on the obligee by the contract or is evident from the circumstances.

3 The specific provisions governing charges on immovable property, securities and composition agreements are unaffected.


Division One: General Provisions
Title Three: Extinction of Obligations
B. Extinction by agreement

Art. 115

No particular form is required for the extinction of a claim by agreement even where the obligation itself could not be assumed without satisfying certain formal requirements required by law or elected by the parties.


Division One: General Provisions
Title Three: Extinction of Obligations
C. Novation
I. In general

Art. 116

1 Where a new debt relationship is contracted, there is no presumption of novation in respect of an old one.

2 In particular, in the absence of agreement to the contrary, novation does not result from signature of a bill of exchange in respect of an existing debt or from the issue of a new borrower’s note or contract of surety.


Division One: General Provisions
Title Three: Extinction of Obligations
C. Novation
II. In relation to current accounts

Art. 117

1 The mere posting of individual entries in a current account does not result in novation.

2 However, there is a presumption of novation if the balance on the account has been drawn and acknowledged.

3 Where special security exists for one of the account entries, unless otherwise agreed, such security is retained even if the balance on the account is drawn and acknowledged.


Division One: General Provisions
Title Three: Extinction of Obligations
D. Merger

Art. 118

1 An obligation is deemed extinguished by merger where the capacities of creditor and debtor are united in the same entity.

2 In the event of de-merger, the obligation is revived.

3 The specific provisions governing charges on immovable property and securities are unaffected.


Division One: General Provisions
Title Three: Extinction of Obligations
E. Performance becomes impossible

Art. 119

1 An obligation is deemed extinguished where its performance is made impossible by circumstances not attributable to the obligor.

2 In a bilateral contract, the obligor thus released is liable for the consideration already received pursuant to the provisions on unjust enrichment and loses his counter-claim to the extent it has not yet been satisfied.

3 This does not apply to cases in which, by law or contractual agreement, the risk passes to the obligee prior to performance.


Division One: General Provisions
Title Three: Extinction of Obligations
F. Set-off
I. Requirement
1. In general

Art. 120

1 Where two persons owe each other sums of money or performance of identical obligations, and provided that both claims have fallen due, each party may set off his debt against his claim.

2 The debtor may assert his right of set-off even if the countervailing claim is contested.

3 A time-barred claim may be set off provided that it was not time-barred at the time it became eligible for set-off.


Division One: General Provisions
Title Three: Extinction of Obligations
F. Set-off
I. Requirement
2. Under surety

Art. 121

A surety may refuse to satisfy the creditor to the extent that the principal debtor has a right of set-off.


3. In contracts conferring rights on third parties

Art. 122

A person who has undertaken an obligation in favour of a third party may not set off that obligation against his own claims against said party.


Division One: General Provisions
Title Three: Extinction of Obligations
F. Set-off
I. Requirement
4. Where the debtor is bankrupt

Art. 123

1 Where the debtor is bankrupt, his creditors may set off their claims, even if they are not due, against the claims that the adjudicated bankrupt holds against them.

2 The exclusion or challenge of set-off in the event of the debtor’s bankruptcy is governed by the provisions of debt collection and bankruptcy law.


Division One: General Provisions
Title Three: Extinction of Obligations
F. Set-off
II. Effect of set‑off

Art. 124

1 A set-off takes place only if the debtor notifies the creditor of his intention to exercise his right of set-off.

2 Once this has occurred, to the extent that they cancel each other out, the claim and countervailing claim are deemed to have been satisfied as of the time they first became susceptible to set-off.

3 The special customs relating to commercial current accounts are unaffected.


Division One: General Provisions
Title Three: Extinction of Obligations
F. Set-off
III. Exceptions

Art. 125

The following obligations may not be discharged by set-off except with the creditor’s consent:

1.

 obligations to restore or replace objects that have been deposited, unlawfully removed or retained in bad faith;

2.

 obligations that by their very nature require actual performance to be rendered to the creditor, such as maintenance claims and salary payments that are absolutely necessary for the upkeep of the creditor and his family;

3.

 obligations under public law in favour of the state authorities.


Division One: General Provisions
Title Three: Extinction of Obligations
F. Set-off
IV. Waiver

Art. 126

The debtor may waive his right of set-off in advance.


Division One: General Provisions
Title Three: Extinction of Obligations
G. Prescription
I. Periods
1. Ten years

Art. 127

All claims prescribe after ten years unless otherwise provided by federal civil law.


Division One: General Provisions
Title Three: Extinction of Obligations
G. Prescription
I. Periods
2. Five years

Art. 128

The following prescribe after five years:

1.

 claims for agricultural and commercial rent and other rent, interest on capital and all other periodic payments;

2.

 claims in connection with delivery of foodstuffs, payments for board and lodging and hotel expenses;

 3.[47](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fn-d8e2820)

 claims in connection with work carried out by tradesmen and craftsmen, purchases of retail goods, medical treatment, professional services provided by advocates, solicitors, legal representatives and notaries, and work performed by employees for their employers.

[47](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e2820) Amended by No II Art. 1 No 4 of the FA of 25 June 1971, in force since 1 Jan. 1972 ([AS **1971** 1465](eli/oc/1971/1465%5F1461%5F1461/en);[BBl **1967** II 241](eli/fga/1967/2%5F241%5F249%5F177/en)). See also the Final and Transitional Provisions of Title X, at the end of this Code.


Division One: General Provisions
Title Three: Extinction of Obligations
G. Prescription
I. Periods
2a. Twenty years

Art. 128a48

Claims for damages or satisfaction arising from an injury or death in breach of contract prescribe three years from the date on which the person suffering damage became aware of the damage, but in any event twenty years after the date on which the harmful conduct took place or ceased.

[48](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e2847) Inserted by No I of the FA of 15 June 2018 (Revision of the Law on Prescription), in force since 1 Jan. 2020 ([AS **2018** 5343](eli/oc/2018/807/en);[BBl **2014** 235](eli/fga/2014/65/en)).


Division One: General Provisions
Title Three: Extinction of Obligations
G. Prescription
I. Periods
3. Mandatory prescriptive periods

Art. 129

The prescriptive periods laid down under this Title may not be altered by contract.


Division One: General Provisions
Title Three: Extinction of Obligations
G. Prescription
I. Periods
4. Start of prescriptive period
a. In general

Art. 130

1 The prescriptive period commences as soon as the debt is due.

2 Where a debt falls due on notification, the prescriptive period commences on the first date on which such notice is admissible.


Division One: General Provisions
Title Three: Extinction of Obligations
G. Prescription
I. Periods
4. Start of prescriptive period
b. For periodic obligations

Art. 131

1 In the case of life annuities and similar periodic obligations, the prescriptive period for the principal claim commences on the date on which the first instalment in arrears was due.

2 When the principal claim prescribes, so too do all claims in respect of individual payments.


Division One: General Provisions
Title Three: Extinction of Obligations
G. Prescription
I. Periods
5. Computation of prescriptive periods

Art. 132

1 When computing prescriptive periods, the date on which the prescriptive period commences is not included and the period is not deemed to have expired until the end of its last day.

2 In other respects the provisions governing computation of time limits for performance also apply to prescription.


Division One: General Provisions
Title Three: Extinction of Obligations
G. Prescription
II. Effect on accessory claims

Art. 133

When the principal claim prescribes, so too do all claims for interest and other accessory claims.


III. Prevention and suspension of the prescriptive period

Art. 134

1 The prescriptive period does not commence and, if it has begun, is suspended:

 1.[49](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fn-d8e2939)

 in respect of the claims of children against their parents, until the children reach the age of majority;

 2.[50](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fn-d8e2959)

 in respect of the claim of person lacking capacity of judgement against his or her carer, for the duration of the advance care directive;

3.

 in respect of the claims of spouses against each other, for the duration of the marriage;

 3bis.[51](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fn-d8e2984)

in respect of the claims of registered partners against each other, for the duration of the registered partnership;

 4.[52](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fn-d8e3018)

 in respect of the claim of an employee against his employer with whom he shares a household, for the duration of the employment relationship;

5.

 for as long as the debtor has the usufruct of the claim;

 6.[53](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fn-d8e3042)

 for as long as the claim cannot be brought before a court for objective reasons;

 7.[54](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fn-d8e3062)

 for claims made by or against a testator, for the duration of the public inventory procedure;

 8.[55](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fn-d8e3082)

 for the duration of settlement talks, mediation proceedings or any other extra-judicial dispute resolution procedure, provided the parties agree thereon in writing.

2 The prescriptive period begins or resumes at the end of the day on which the cause of prevention or suspension ceases to apply.

3 The specific provisions of debt collection and bankruptcy law are unaffected.

[49](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e2939) Amended by Annex No 1 to the FA of 20 March 2015 (Child Maintenance), in force since 1 Jan. 2017 ([AS **2015** 4299](eli/oc/2015/728/en);[BBl **2014** 529](eli/fga/2014/98/en)).

[50](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e2959) Amended by Annex No 10 of the FA of 19 Dec. 2008 (Adult Protection, Law of Persons and Law of Children), in force since 1 Jan. 2013 ([AS **2011** 725](eli/oc/2011/114/en);[BBl **2006** 7001](eli/fga/2006/899/en)).

[51](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e2984) Inserted by Annex No 11 to the[AS **2005** 5097](eli/oc/2005/708/en);[BBl **2004** 4955 ](eli/fga/2004/884/en)[4965 ](eli/fga/2004/886/en)of 18 June 2004, in force since 1 Jan. 2007 ([AS **2005** 5685](eli/oc/2005/782/en);[BBl **2003** 1288](eli/fga/2003/194/en)).

[52](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e3018) Amended by No II Art. 1 No 5 of the FA of 25 June 1971, in force since 1 Jan. 1972 ([AS **1971** 1465](eli/oc/1971/1465%5F1461%5F1461/en);[BBl **1967** II 241](eli/fga/1967/2%5F241%5F249%5F177/en)). See also the Final and Transitional Provisions of Title X, at the end of this Code.

[53](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e3042) Amended by No I of the FA of 15 June 2018 (Revision of the Law on Prescription), in force since 1 Jan. 2020 ([AS **2018** 5343](eli/oc/2018/807/en);[BBl **2014** 235](eli/fga/2014/65/en)).

[54](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e3062) Inserted by No I of the FA of 15 June 2018 (Revision of the Law on Prescription), in force since 1 Jan. 2020 ([AS **2018** 5343](eli/oc/2018/807/en);[BBl **2014** 235](eli/fga/2014/65/en)).

[55](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e3082) Inserted by No I of the FA of 15 June 2018 (Revision of the Law on Prescription), in force since 1 Jan. 2020 ([AS **2018** 5343](eli/oc/2018/807/en);[BBl **2014** 235](eli/fga/2014/65/en)).


Division One: General Provisions
Title Three: Extinction of Obligations
G. Prescription
IV. Interruption of prescriptive period
1. Grounds for interruption

Art. 135

The prescriptive period is interrupted:

1.

 if the debtor acknowledges the claim and in particular if he makes interest payments or part payments, gives an item in pledge or provides surety;

 2.[56](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fn-d8e3123)

 by debt enforcement proceedings, an application for conciliation, submission of a statement of claim or defence to a court or arbitral tribunal, or a petition for bankruptcy.

[56](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e3123) Amended by Annex 1 No II 5 of the Civil Procedure Code of 19 Dec. 2008, in force since 1 Jan. 2011 ([AS **2010** 1739](eli/oc/2010/262/en);[BBl **2006** 7221](eli/fga/2006/914/en)).


2. Effect of interruption on co-obligors

Art. 13657

1 Where the prescriptive period for one person who is jointly and severally liable for a debt or jointly liable for indivisible performance is interrupted, it is likewise interrupted for all other co-obligors, provided the interruption is due to an act by the creditor.

2 Where the prescriptive period for the principal debtor is interrupted, it is likewise interrupted for the surety, provided the interruption is due to an act by the creditor.

3 However, where the prescriptive period for the guarantor is interrupted, it is not interrupted for the principal debtor.

4 An interruption effective against an insurer is also effective against the debtor and vice-versa, provided there is a direct claim against the insurer.

[57](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e3145) Amended by No I of the FA of 15 June 2018 (Revision of the Law on Prescription), in force since 1 Jan. 2020 ([AS **2018** 5343](eli/oc/2018/807/en);[BBl **2014** 235](eli/fga/2014/65/en)).


a. In the event of acknowledgment or judgment

Art. 137

1 A new prescriptive period commences as of the date of the interruption.

2 If the claim has been acknowledged by public deed or confirmed by court judgment, the new prescriptive period is always ten years.


Division One: General Provisions
Title Three: Extinction of Obligations
G. Prescription
IV. Interruption of prescriptive period
3. Start of new prescriptive period
b. By action of the creditor

Art. 138

1 Where the prescriptive period has been interrupted by an application for conciliation, or the submission of a statement of claim or defence, a new prescriptive period commences when the dispute is settled before the relevant court.[58](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fn-d8e3199)

2 Where the prescriptive period has been interrupted by debt enforcement proceedings, a new prescriptive period commences as of each step taken in the proceedings.

3 Where the prescriptive period has been interrupted by a petition for bankruptcy, a new prescriptive period commences as of the time specified by bankruptcy law at which it once again becomes possible to assert the claim.

[58](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e3199) Amended by Annex 1 No II 5 of the Civil Procedure Code of 19 Dec. 2008, in force since 1 Jan. 2011 ([AS **2010** 1739](eli/oc/2010/262/en);[BBl **2006** 7221](eli/fga/2006/914/en)).


V. Prescription of the right of recourse

Art. 13959

Where two or more debtors are jointly and severally liable, the right of recourse of each debtor who has satisfied the creditor prescribes three years from date on which he satisfies the creditor and is aware of his co-debtors.

[59](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e3225) Amended by No I of the FA of 15 June 2018 (Revision of the Law on Prescription), in force since 1 Jan. 2020 ([AS **2018** 5343](eli/oc/2018/807/en);[BBl **2014** 235](eli/fga/2014/65/en)).


VI. Prescription of a charge on chattels

Art. 140

The existence of a charge on chattels does not prevent the prescription of a claim, although the fact of its prescription does not prevent the creditor from asserting his right under the charge.


VII. Waiver of the prescription defence60

Art. 141

1 The debtor may waive the right to object on the grounds of prescription, in each case for a maximum of ten years from the start of the prescriptive period.[61](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fn-d8e3279)

1bis The waiver must be made in writing. Only the user of general terms and conditions of business may waive the defence of prescription in such terms and conditions.[62](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fn-d8e3297)

2 A waiver granted by a joint and several debtor does not bind the other joint and several debtors.

3 The same applies to co-obligors of an indivisible debt and to the surety in the event of waiver by the principal debtor.

4 A waiver granted by a debtor shall bind the debtor’s insurers and vice-versa, provided a direct claim exists against the insurer.[63](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fn-d8e3321)

[61](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e3279) Amended by No I of the FA of 15 June 2018 (Revision of the Law on Prescription), in force since 1 Jan. 2020 ([AS **2018** 5343](eli/oc/2018/807/en);[BBl **2014** 235](eli/fga/2014/65/en)).

[62](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e3297) Inserted by No I of the FA of 15 June 2018 (Revision of the Law on Prescription), in force since 1 Jan. 2020 ([AS **2018** 5343](eli/oc/2018/807/en);[BBl **2014** 235](eli/fga/2014/65/en)).

[63](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e3321) Inserted by No I of the FA of 15 June 2018 (Revision of the Law on Prescription), in force since 1 Jan. 2020 ([AS **2018** 5343](eli/oc/2018/807/en);[BBl **2014** 235](eli/fga/2014/65/en)).


Division One: General Provisions
Title Three: Extinction of Obligations
G. Prescription
VIII. Application

Art. 142

A court may not apply the prescriptive defence of its own accord.


Title Four: Special Relationships relating to Obligations

Section One: Joint and Several Obligations

Art. 143

1 Debtors become jointly and severally liable for a debt by stating that each of them wishes to be individually liable for performance of the entire obligation.

2 Without such a statement of intent, debtors are joint and severally liable only in the cases specified by law.


II. Relationship between creditor and debtor

Art. 144

1 A creditor may at his discretion request partial performance of the obligation from each joint and several debtor or else full performance from any one of them.

2 All the debtors remain under the obligation until the entire claim has been redeemed.


Art. 145

1 A joint and several debtor may raise against the creditor only those objections that are based either on his personal relationship with the creditor or on the nature of or collective reason for the joint and several obligation.

2 Each joint and several debtor is liable to the others if he fails to raise the objections which all of them are entitled to raise.


Art. 146

Unless otherwise provided, a joint and several debtor must not take any action which might impair the position of his fellows.


2. Extinction of the joint and several obligation

Art. 147

1 Where one joint and several debtor satisfies the creditor by payment or set-off, the others are discharged to that extent.

2 Where one joint and several debtor is released from liability without satisfaction of the creditor, such release does not benefit the others save to the extent justified by the circumstances or the nature of the obligation.


III. Relationship between joint and several debtors

Art. 148

1 Unless the legal relationship between the joint and several debtors indicates otherwise, each of them assumes an equal share of the payment made to the creditor.

2 A joint and several debtor who pays more than his fair share has recourse against the others for the excess.

3 Amounts that cannot be recovered from one joint and several debtor must be borne in equal shares by the others.


Art. 149

1 A joint and several debtor with right of recourse against his fellow debtors is subrogated to the rights of the creditor to the extent the latter has been satisfied.

2 The creditor is liable if he favours the legal position of one joint and several debtor to the detriment of the others.


Art. 150

1 Multiple creditors become joint and several creditors where the debtor states that he wishes to grant each of them the right to receive full performance of the debt and in the cases prescribed by law.

2 Performance made to one joint and several creditor discharges the debtor as against all of them.

3 The debtor may choose which joint and several creditor he makes the payment to, provided none of them has initiated legal proceedings against him.


Art. 151

1 A contract is conditional if its binding nature is made dependent on the occurrence of an event that is not certain to happen.

2 The contract takes effect as soon as this condition precedent occurs, unless the parties clearly intended otherwise.


Art. 152

1 Until such time as the condition precedent occurs, the conditional obligor must refrain from any act which might prevent the due performance of his obligation.

2 A conditional obligee whose rights are jeopardised is entitled to apply for the same protective measures as if his claim were unconditional.

3 On fulfilment of the condition precedent, dispositions made before it occurred are void to the extent that they impair the effect of the condition precedent.


Art. 153

1 A creditor into whose possession a promised object has been delivered before the condition precedent occurred may, on fulfilment of the condition precedent, keep any benefits obtained from it in the interim.

2 If the condition precedent fails to occur, he is obliged to return such benefits.


Art. 154

1 A contract whose termination is made dependent on the occurrence of an event that is not certain to happen lapses as soon as that condition is fulfilled.

2 As a rule, there is no retroactive effect.


Art. 155

If the condition consists of an act by one of the parties and that act need not be carried out in person, it may also be carried out by the party’s heirs.


Art. 156

A condition is deemed fulfilled where one of the parties has prevented its fulfilment by acting in bad faith.


Art. 157

Where a condition is attached with the intention of encouraging an unlawful or immoral act or omission, the conditional claim is void.


Section Three: Earnest Money, Forfeit Money, Salary Deductions and Contractual Penalties

Art. 158

1 Earnest money paid on entering into a contract is deemed a mark of the party’s intention to honour the contract rather than a forfeit.

2 Unless otherwise stipulated by agreement or local custom, the earnest money is retained by the recipient without being deducted from his claim.

3 Where a sum of forfeit money has been agreed, the party that paid the sum may withdraw from the contract by relinquishing it and the party that received it by returning twice the amount.


Art. 15964

[64](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e3577) Repealed by No II Art. 6 No 1 of the FA of 25 June 1971, with effect from 1 Jan. 1972 ([AS **1971** 1465](eli/oc/1971/1465%5F1461%5F1461/en);[BBl **1967** II 241](eli/fga/1967/2%5F241%5F249%5F177/en)). See also the Final and Transitional Provisions of Title X, at the end of this Code.


1. Relation between penalty and contractual performance

Art. 160

1 Where a penalty is promised for non-performance or defective performance of a contract, unless otherwise agreed, the creditor may only compel performance or claim the penalty.

2 Where the penalty is promised for failure to comply with the stipulated time or place of performance, the creditor may claim the penalty in addition to performance provided he has not expressly waived such right or accepted performance without reservation.

3 The foregoing does not apply if the debtor can prove that he has the right to withdraw from the contract by paying the penalty.


Art. 161

1 The penalty is payable even if the creditor has not suffered any damage.

2 Where the damage suffered exceeds the penalty amount, the creditor may claim further compensation only if he can prove that the debtor was at fault.


Art. 162

1 Any agreement that part payments are forfeited to the creditor in the event the contract is terminated shall be determined in accordance with the provisions governing contractual penalties.

2 ...[65](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fn-d8e3641)

[65](https://www.fedlex.admin.ch/eli/cc/27/317%5F321%5F377/en#fnbck-d8e3641) Repealed by Annex 2 No II 1 to the FA of 23 March 2001 on Consumer Credit, with effect from 1 Jan. 2003 ([AS **2002** 3846](eli/oc/2002/593/en);[BBl **1999** III 3155](eli/fga/1999/1%5F3155%5F2879%5F2697/en)).


II. Amount, nullity and reduction of the penalty

Art. 163

1 The parties are free to determine the amount of the contractual penalty.

2 The penalty may not be claimed where its purpose is to reinforce an unlawful or immoral undertaking or, unless otherwise agreed, where performance has been prevented by circumstances beyond the debtor’s control.

3 At its discretion, the court may reduce penalties that it considers excessive.


Title Five: Assignment of Claims and Assumption of Debt

Art. 164

1 A creditor may assign a claim to which he is entitled to a third party without the debtor’s consent unless the assignment is forbidden by law or contract or prevented by the nature of the legal relationship.

2 The debtor may not object to the assignment on the grounds that it was excluded by agreement against any third party who acquires the claim in reliance on a written acknowledgement of debt in which there is no mention of any prohibition of assignment.


Art. 165

1 An assignment is valid only if done in writing.

2 No particular form is required for an undertaking to enter into an assignment agreement.


Art. 166

Where legal provisions or a court judgment require a claim to be assigned to another person, the assignment is effective towards third parties without need for any particular form or even for a statement of intent by the former creditor.


Art. 167

Where, before the assignment has been brought to his attention by the assignor or the assignee, the debtor makes payment in good faith to his former creditor or, in the case of multiple assignments, to a subsequent assignee who acquired the claim, he is validly released from his obligation.


Art. 168

1 In the event of dispute as to entitlement, the debtor may refuse payment and discharge his obligation by depositing the payment with the court.

2 He makes payment at his own risk if he does so with knowledge of the dispute.

3 Where legal action is pending and the debt is due, each party may require the debtor to deposit the payment with the court.


Art. 169

1 Any objection that could have been made to the assignor’s claim may also be made to the assignee if it applied at the time the debtor first learned of the assignment.

2 If the debtor held a countervailing claim that was not yet due at that time, he may nonetheless set it off against the assigned claim provided it did not fall due any later than the assigned claim.


2. Transfer of preferential and accessory rights, documents and evidence

Art. 170

1 The assignment of a claim includes all preferential and accessory rights except those that are inseparable from the person of the assignor.

2 The assignor is bound to surrender to the assignee the legal document pertaining to the debt together with all available evidence thereof and to furnish him with all information necessary to assert the claim.

3 Arrears of interest are presumed assigned with the main debt.


Art. 171

1 Where assignment is made for valuable consideration, the assignor warrants that the claim exists at the time of assignment.

2 However, he does not warrant that the debtor is solvent unless he has undertaken to do so.

3 Where there is no valuable consideration for the assignment, the assignor does not even warrant that the claim exists.


b. In the case of assignment by way of satisfaction

Art. 172

Where a creditor has assigned his claim in payment without fixing the amount at which the claim should be credited, the assignee need credit only the amount that he actually receives from the debtor or would have been able to obtain by exercising all due diligence.


Art. 173

1 The assignor is liable under warranty only for the valuable consideration received plus interest and in addition for the costs of the assignment and of any unsuccessful proceedings against the debtor.

2 Where a claim is assigned by operation of law, the previous creditor warrants neither the existence of the claim nor the solvency of the debtor.


Art. 174

Where the law envisages special provisions governing the assignment of claims, these are unaffected.