What are General Terms and Conditions (GTC) and how are they formulated?
The use of general terms and conditions (GTC) allows the same terms and conditions to be agreed for a large number of contracts. They are pre-formulated conditions that are not negotiated in advance of the conclusion of the contract.
Legal basis
In contrast to other countries, there are hardly any legal provisions for GTCs in Switzerland. Therefore, the usual norms of the Code of Obligations apply. The only restriction is found in Art. 8 of the UWG (Federal Law against Unfair Competition). Anyone who uses GTCs that provide for a significant and unjustified disproportion between agreed rights and obligations to the detriment of consumers in a manner that violates good faith is acting unfairly. However, this rather unspecific article does not really specify the GTC. This is in contrast to Germany where very restrictive rules exist to protect consumers.
In the business world, GTCs are mainly used for mass transactions. Thus, business processes can be streamlined. Thanks to the predefined modalities, the contracting parties do not have to negotiate in areas such as delivery or payment modalities. However, this limits the freedom of contract for the consumer. He either enters into the contract on the pre-formulated terms or forgoes the conclusion of the contract. The principle of “take it or leave it” applies.
Formulation
The GTC are pre-formulated by the seller or the service provider. In principle, freedom of contract applies, but the terms and conditions must not violate Art. 8 UWG. The GTC are formulated in such a way that they can be used for a large number of different business transactions.
