Lexipedia

Trust principle in contract interpretation

A Swiss method of interpreting declarations by how a reasonable recipient in the circumstances could and should have understood them.

In Swiss contract law, the trust principle applies when the parties’ actual common intention cannot be proven. Declarations and conduct are then interpreted objectively, according to how a reasonable and honest recipient, placed in the concrete circumstances, could and should have understood them. The rule protects reliance and legal certainty, but it does not override a proven real consensus. It is relevant for contract formation, interpretation of clauses, notices, and the scope of obligations.

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