What are general terms and conditions (GTC) and how are they formulated?
The use of general terms and conditions (GTC) allows the same conditions to be agreed for a large number of contracts. They are pre-formulated conditions that are not negotiated prior to the conclusion of the contract.
Legal basis
In contrast to other countries, there are hardly any legal provisions for GTCs in Switzerland. The usual standards of the Swiss Code of Obligations therefore apply. The only restriction can be found in Art. 8 of the UWG (Federal Act against Unfair Competition). Anyone who uses general terms and conditions that provide for a significant and unjustified imbalance between agreed rights and obligations to the detriment of consumers in breach of 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. This allows business processes to be rationalized. Thanks to the predefined modalities, the contracting parties no longer have to negotiate contracts in areas such as delivery or payment modalities. However, this restricts the consumer’s freedom of contract. They either enter into the contract under the pre-formulated conditions or they refrain from concluding the contract. The principle of “take it or leave it” applies.
Formulation
The GTC are pre-formulated by the seller or service provider. In principle, freedom of contract applies, but the terms and conditions may 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
