Glossary / Law of Obligations

Freedom of contract

Freedom of contract is a foundational principle of Swiss obligations law. It includes the freedom to conclude or refuse a contract, choose the counterparty, determine content and form, and modify or end contractual relations. The principle supports private autonomy and market exchange, but it is not absolute. Mandatory statutory rules, personality rights, competition law, consumer and employment protection, good faith, illegality, immorality and public policy can restrict contractual choices. Courts also interpret contracts within the limits of trust and fair dealing.

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