Don’t act surprised

Author: | Published: 23 Apr 2019

As a recent decision by the Swiss Federal Tribunal has shown, written stipulations are not always what they seem

It can happen that written stipulations in a contract are not what they seem: a clear obligation cut in stone. This may hold especially true if contracts are governed by Swiss substantive law. Under Swiss law, contracts are primarily interpreted in line with the actual intent of the parties. Only if such actual intent cannot be established, the contract will have to be interpreted on the basis of good faith, i.e. based on what a reasonable person would have understood when entering into the contract under the given circumstances....