Glossary / Consumer Protection Law

Unfair contract terms

Unfair contract terms control limits the use of standard clauses that the weaker party has little realistic chance to negotiate. Problematic terms may exclude essential liability, allow one-sided changes, impose excessive penalties, restrict remedies or create surprising obligations. Swiss law addresses such clauses through general contract interpretation, good faith, rules on unusual terms, mandatory consumer protections and unfair competition principles. The assessment depends on transparency, bargaining position, the contract type and whether the clause disturbs the agreed balance.

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