Reduction of price

Price reduction is a warranty remedy allowing the recipient to keep the defective performance while paying less. In Swiss law it is significant in sales and work contracts, where defects reduce value or usefulness but rescission is unnecessary or disproportionate. The reduction is usually measured by comparing the value as promised with the value as delivered, unless the contract or circumstances justify another method. It may coexist with damages for additional loss if the legal requirements are met, and timely notice of defects is often essential.