Culpa in contrahendo

Culpa in contrahendo concerns liability arising during contract negotiations, before a valid contract is concluded or when a contract later proves invalid. Swiss law recognises that parties entering negotiations must act in good faith and respect duties of care, disclosure, and loyalty. Liability may arise, for example, from misleading information, unjustified breaking-off of advanced negotiations, or causing reliance losses. The remedy typically protects the negative interest: placing the injured party as far as possible in the position it would have occupied without the faulty negotiations.