Gross, Middle and Simple Negligence (WOW 2/2010)

According to art. 100(1) of the Swiss Code of Obligations (CO), an agreement entered into in advance, according to which liability for unlawful intent or gross negligence would be excluded, is null and void (see also WOW45/09).

According to Swiss legal theory and case law, a person acts grossly negligent when he gravely departs from elementary imperatives of precaution and thus disregards what would make sense to every conscientious and judicious human being in the same situation and under the same circumstances.

When distinguishing gross negligence from middle and simple negligence, emphasis is frequently placed on the following aspects of the contractor's misconduct: The fundamental condition, which must be met in order for a breach of contract to be regarded as gross negligence is that there is a breach of an essential obligation under the contract.

If the contractor advertises as being a specialist within his field, he is usually under a higher duty of care than other professionals within the same field who do not claim to be specialists. It is thus easier for a specialist to commit a breach of contract amounting to gross negligence than it is for a normal professional.

The damage resulting from the breach of contract must be considered as probable (and not just possible) in order for the breach to amount to gross negligence.

Finally, a breach of contract will more easily be regarded as grossly negligent if the breach could affect people's health or lives.

Official Swiss Legal Forms (WoW 01/10)

German - English

This list is an amendment of my last Blawg:

1. Verein - Association
2. Stiftung - Foundation
3. in Liquidation - in liquidation
4. in Nachlassliquidation - in liquidation with voluntary assignment

Official Swiss Legal Forms (WoW 50/09)

This week's WoW is unusual but not less helpful. Below you may find a list of all official Swiss legal forms (Schweizer Rechtsformen bzw. Rechtsformzusätze) as accepted (i.e. registered) by the Swiss Federal Commercial Registry Office:

Deutsch	English
Einzelunternehmen	Sole proprietorship
Kollektivgesellschaft	(General) Partnership
Kommanditgesellschaft	Limited Partnership
Aktiengesellschaft [Abk.: AG]	Limited [abbr.: Ltd] or (In-) Corporation [abbr.: inc / corp.]
Kommanditaktiengesellschaft	Corporation with unlimited partners
Gesellschaft mit beschränkter Haftung [Abk.: GmbH]	Limited Liability Company [abbr.: Ltd Liab. Co./LLC]
Genossenschaft	Cooperative
Zweigniederlassung	Branch
Tochtergesellschaft	Subsidiary
Kommanditgesellschaft für kollektive Kapitalanlagen	Limited Partnership for collective investment schemes
Investmentgesellschaft mit festem Kapital [Abk.: SICAF]	Limited Partnership for collective investment schemes with a fixed capital (SICAF)
Investmentgesellschaft mit variablem Kapital [Abk.: SICAV]	Limited Partnership for collective investment schemes with a variable capital [abbr.: SICAV]

You may find legal forms in other Swiss official languages here.

Source: Weisung des Eidgenössichen Amts für das Handeslregister an die Handelsregisterbehörden für die Prüfung von Firmen und Namen vom 1. April 2009 (siehe Seite 19)

debt collection proceedings (WoW 49/09)

Explanation:
Debt collection proceedings are the formal process for the settlement of an outstanding claim. In Switzerland, debt collection proceedings usually start with the introductory procedure, which consists of 4 stages:

1. debt collection request (Art. 67 SchKG),
2. summons for payment (Art. 69 ff. SchKG),
3. formal objection (Art. 74 ff. SchKG), and
4. (final or provisional) dismissal of objection (Art. 79 ff. SchKG).

After the above-mentioned introductory procedure, three different forms of debt collection can be pursued:

1. debt collection by seizure of assets (Art. 89 ff. SchKG),
2. debt collection by realizing pledged property (Art. 151 ff. SchKG), and
3. debt collection by bankruptcy (Art. 159 ff. SchKG).

Example:
Anyone can initiate debt collection proceedings by making a written or verbal statement to the competent debt collection office at the place of residence of the debtor.

German translation:

1. debt collection proceedings (pl.) - das Betreibungsverfahren
2. debt collection request - Betreibungsbegehren
3. introductory procedure - Einleitungsverfahren
4. summons for payment - Zahlungsbefehl
5. formal objection - Rechtsvorschlag
6. (final or provisional) dismissal of objection - (provisorische oder definitive) Rechtsöffnung
7. debt collection by seizure of assets - Betreibung auf Pfändung
8. debt collection by realizing pledged property - Betreibung auf Pfandverwertung
9. debt collection by bankruptcy - Betreibung auf Konkurs

escrow account (WoW 48/09)

Explanation:
An escrow account is an account established by a broker for the purpose of holding funds on behalf of the broker's principal or some other person until the consummation or termination of a transaction.

Example:
If you are buying a house, the escrow agent would hold the down payment you make when your offer is accepted until the purchase is finalized.

Phrase book
- escrow agent
- escrow agreement
- escrow funds
- escrow instructions
- escrow payment

German translation:
Mit escrow agreement wird der bei einem Dritten (escrow agent) hinterlegte Vertrag bezeichnet, welcher eine aufschiebende Bedinung enthält. Nach diesem escrow agreement werden Gelder (escrow funds) auf ein Konto (escrow account) hinterlegt. Diese escrow funds werden von dem escrow agent treuhänderisch verwaltet, bis die im Vertrag aufgeführte Bedingung eintritt und die escrow funds an die im escrow agreement genannte Person vom escrow agent ausbezalt werden.

More information
en.wikipedia.org/Escrow

limitation (WoW 47/09)

Explanation:
Limitation is a period of time within which a civil claim, a criminal action etc. can be prosecuted (time restriction for legal action).

Examples:
1.) After ten years, all claims for which the federal civil law does not provide otherwise are barred by the statute of limitations (art. 127 Swiss Code of Obligations).

2.) The statute of limitations can not be waived in advance (art. 141 para 1 Swiss Code of Obligations).

German translation:
Verjährung, die (noun)

Phrase book:
- limitation period (die Verjährungsfrist)
- statute of limitations (die Verjährungvorschrift) - art. 127 et seq. CO
- to plead the statute of limitations (die Einrede der Verjährung erklären)

contra bonos mores (WoW start-up special)

Explanation:
Contra bonos mores is Latin meaning literally against good morals. An act contra bonos mores is offensive to
- conscience
- a sense of justice and
- public policy.

Example:
According to art. 20 para 1 Swiss Code of Obligations, an agreement contra bonos mores is null and void.

German translation:
sittenwidrig (Adj.), gegen die guten Sitten