The Latest Case Law on Swiss Commercial Contracts
Case Law
Insurance agreement
Can the Massive Increase of Insurance Premiums for Private Room Supplementary Insurance be a Ground for Contract Invalidation?
A policyholder suffering from leukemia has benefited from supplementary private room insurance for years. During the coverage period, the insurance company has increased the insurance premium by a staggering amount. The policyholder unsuccessfully tried to invalidate the contract to obtain a partial refund of the premiums paid.
General Terms and Conditions, Insurance agreement
Measures Taken in Relation to the COVID-19 Pandemic Ruled as One Event for Insurance Purposes
Through the application of an interpretation based on the principle of trust, the Swiss Federal Supreme Court clarified that all measures adopted during the COVID-19 pandemic formed a single insured event under an “All Risks Business Insurance” policy.
Loan agreement
Transfer of a commercial lease to a third party (Art. 263 SCO): refusal for good cause
In this case, the Federal Supreme Court confirmed the mandatory nature of Art. 263 SCO: parties to a lease agreement cannot agree on more stringent conditions for a commercial lease transfer than those provided by the law.
Innominate contracts, IT contract
Termination of an IT Maintenance Contract for Alleged Security Breaches: What Must the Client Prove?
A client attempted to terminate (with immediate effect) a three-year IT maintenance contract it entered into with an IT provider, by claiming major security violations and other alleged breaches of contract.
Brokerage contract
Are broker fees on a real estate transaction conditional on a minimum sale price?
A contract for the renovation and sale of a property by an architect stated that the sale price “could” fall within a specified range. This clause, when properly interpreted, did not make the architect’s entitlement to fees contingent on achieving a minimum sale price.
Insurance agreement
Cyberinsurance Coverage for Ransomware Payments vs US Sanctions Regulations
An insurance company did not have the right to refuse to pay its insured client, a victim of a cyberattack who had made a ransomware payment, even if it claimed that its obligation to reimburse the ransomware payment would expose it to US sanctions.