Federal Act on Private International Law (PILA)

By Steph3
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In The Matter OfFederal Act on Private International Law (PILA)
Exhibit A
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English is not an official language of the Swiss Confederation. This translation is provided for information purposes only and has no legal force.

Section 1 Contracts

I. Jurisdiction

1. Domicile and establishment

Amended by Art. 3 No 3 of the FD of 11 Dec. 2009 (Approval and Implementation of the Lugano Convention), in force since 1 Jan. 2011 (AS 2010 5601; BBl 2009 1777).

Art. 112

1 The Swiss courts at the domicile or, in the absence of a domicile, at the habitual residence of the defendant have jurisdiction to hear actions arising out of a contract. 2 Moreover, the Swiss courts at the place of the defendant’s establishment have jurisdiction to hear actions relating to an obligation arising out of the operation of that establishment.

2. Place of performance

Art. 113

If the characteristic obligation of the contract is to be performed in Switzerland, the action may also be brought before the Swiss court at the place of performance.

Art. 113 — Amended by Art. 3 No 3 of the FD of 11 Dec. 2009 (Approval and Implementation of the Lugano Convention), in force since 1 Jan. 2011 (AS 2010 5601; BBl 2009 1777).

3. Consumer contracts

Art. 114

1 An action by a consumer relating to a contract which meets the requirements stated in Article 120 paragraph 1 may be brought at the consumer’s choice before the Swiss courts: a. at their domicile or habitual residence; or b. at the domicile or, in the absence of a domicile, at the habitual residence of the supplier. 2 A consumer cannot waive in advance jurisdiction at their domicile or habitual residence.

4. Employment contracts

Art. 115

1 The Swiss courts at the defendant’s domicile or at the place where the employee habitually performs their work have jurisdiction to hear actions relating to an employment contract. 2 An action initiated by an employee may also be brought before the courts at their domicile or habitual residence in Switzerland. 3 Moreover, the Swiss courts at the place where an employee is posted from abroad for a limited period of time to carry out all or part of their work have jurisdiction to hear actions pertaining to the terms of employment and the salary conditions applicable to such work.

Para. 3 — Inserted by Annex No 1 of the FA of 8 Oct. 1999 on Workers posted to Switzerland, in force since 1 June 2004 (AS 2003 1370; BBl 1999 6128).

II. Applicable law

1. In general

a. Choice of law

Art. 116

1 Contracts are governed by the law chosen by the parties. 2 The choice of law must be express or result with certainty from the provisions of the contract or from the circumstances; apart from that, it is governed by the chosen law. 3 The choice of law may be made or changed at any time. If a choice of law is made after the conclusion of the contract, it has retroactive effect as of the time of conclusion of the contract. The rights of third parties are reserved.

b. Absence of a choice of law

Art. 117

1 In the absence of a choice of law, contracts are governed by the law of the state with which they have the closest connection. 2 Such a connection is presumed to exist with the state of habitual residence of the party that has to perform the characteristic obligation or, if that party has concluded the contract in the exercise of a professional or business activity, with the state where such party has its establishment. 3 Characteristic obligation means in particular: a. in contracts for the transfer of title: the transferor’s obligation; b. in contracts pertaining to the use of property or of a right: the obligation of the party conferring such use; c. in agency contracts, contracts for work and other contracts to perform services: the service obligation; d. in contracts of deposit: the obligation of the depositary; e. in guarantee or suretyship contracts: the obligation of the guarantor or surety.

2. In particular

a. Sale of movable property

Art. 118

1 Sales of tangible movable property are governed by the Hague Convention of 15 June 1955 on the Law Applicable to International Sales of Goods. 2 Article 120 is reserved.

Para. 1 — SR 0.221.211.4

b. Immovable property

Art. 119

1 Contracts relating to immovable property or to the use of immovable property are governed by the law of the state where the property is located. 2 A choice of law is allowed. 3 However, the form of the contract is governed by the law of the state in which the immovable property is located, unless such state allows the application of another law. For immovable property located in Switzerland, the form of the contract is governed by Swiss law.

c. Consumer contracts

Art. 120

1 Contracts pertaining to goods or services of ordinary consumption intended for a consumer’s personal or family use and not connected with the consumer’s professional or business activity are governed by the law of the state of the consumer’s habitual residence: a. if the supplier received the order in that state; b. if the contract was concluded after an offer or advertising in that state and if the consumer performed in that state the acts required to conclude the contract; or c. if the consumer was induced by the supplier to go abroad for the purpose of placing the order. 2 No choice of law is allowed.

d. Employment contracts

Art. 121

1 Employment contracts are governed by the law of the state in which the employee habitually performs their work. 2 If the employee habitually performs their work in several states, the employment contract is governed by the law of the state of the establishment or, in the absence of an establishment, of the domicile or habitual residence of the employer. 3 The parties may submit the employment contract to the law of the state in which the employee has their habitual residence or in which the employer has their establishment, domicile or habitual residence.

e. Contracts pertaining to intellectual property

Art. 122

1 Contracts pertaining to intellectual property are governed by the law of the state in which the transferor or licensor of the intellectual property right has their habitual residence. 2 A choice of law is allowed. 3 Contracts concluded between an employer and an employee concerning rights to intellectual property created by the employee in the course of performing their work are governed by the law applicable to the employment contract.

3. Common provisions

a. Silence upon receipt of an offer

Art. 123

A party who does not respond to an offer to conclude a contract may invoke the law of the state in which such party has its habitual residence to govern the effects of the silence.

b. Form

Art. 124

1 As to form, contracts are valid if they meet the requirements set out in the law applicable to them or in the law of the place where they were concluded. 2 The form of a contract concluded between persons who are located in different states is valid if it meets the requirements set out in the law of one of those states. 3 The form of a contract is governed exclusively by the law applicable to the contract itself when, in order to protect a party, such law requires compliance with a specific form, unless that law allows the application of another law.

c. Performance and inspection modalities

Art. 125

Performance and inspection modalities are governed by the law of the state in which they are actually carried out.

d. Power of representation

Art. 126

1 If power of representation is based on a contract, the relationship between the principal and the agent is governed by the law applicable to their contract. 2 The conditions under which acts of the agent bind the principal and the third party are governed by the law of the state of the agent’s establishment or, in the absence of such establishment or if the latter was not discernible by the third party, by the law of the state in which the agent carries out their main activity in the case at hand. 3 If the agent is bound to the principal by an employment contract and does not have their own establishment, their establishment is deemed to be at the seat of the principal. 4 The law referred to in paragraph 2 also governs the relationship between an unauthorised agent and the third party.

Section 2 Unjust Enrichment

I. Jurisdiction

Art. 127

The Swiss courts at the domicile or, in the absence of a domicile, at the habitual residence of the defendant have jurisdiction to hear actions for unjust enrichment. Moreover, the courts at the place of an establishment in Switzerland have jurisdiction to hear actions pertaining to the operation of the establishment.

Art. 127 — Amended by Annex No 5 of the FA of 22 June 2007, in force since 1 July 2008 (AS 2008 2551; BBl 2006 1).

II. Applicable law

Art. 128

1 Claims for unjust enrichment are governed by the law which governs the existing or assumed legal relationship on the basis of which the enrichment occurred. 2 In the absence of such a relationship, the claims are governed by the law of the state in which the enrichment occurred; the parties may agree to the application of the law of the forum.

Section 3 Torts

I. Jurisdiction

1. In general

Art. 129

1 The Swiss courts at the domicile or, in the absence of a domicile, at the habitual residence of the defendant have jurisdiction to hear actions in tort. Moreover, the Swiss courts at the place where the act or the result occurred and, for actions pertaining to the operation of an establishment in Switzerland, the courts at the place of the establishment have jurisdiction. 2 ...

Art. 129 — Amended by Annex No 5 of the FA of 22 June 2007, in force since 1 July 2008 (AS 2008 2551; BBl 2006 1). Para. 2 — Repealed by Art. 3 No 3 of the FD of 11 Dec. 2009 (Approval and Implementation of the Lugano Convention), with effect from 1 Jan. 2011 (AS 2010 5601; BBl 2009 1777).

2. In particular:

a. Nuclear incidents

Art. 130

1 Jurisdiction to hear actions relating to nuclear incidents is governed by the Convention of 29 July 1960 on Third Party Liability in the Field of Nuclear Energy as amended by the Additional Protocol of 28 January 1964, the Protocol of 16 November 1982 and the Protocol of 12 February 2004 (the Paris Convention). 2 If the Swiss courts have jurisdiction under this Convention, the action shall be brought in the canton in whose territory the incident occurred, or, where the place of the incident lies outside the sovereign territory of the contracting parties or cannot be determined with certainty, in the canton in whose territory the nuclear installation of the operator liable is located. If several courts have jurisdiction in accordance with these rules, the action shall be brought in the canton that in accordance with Article 13 paragraph (f) number (ii) of the Convention is most closely related to the incident and is the most affected by its effects. 3 The rules on jurisdiction in para

Art. 132 — Amended by Annex No II 3 of the Nuclear Energy Liability Act of 13 June 2008, in force since 1 Jan. 2022, published 27 Jan. 2022 (AS 2022 43; BBl 2007 5397). Para. 1 — SR 0.732.44 Para. 3 — Amended by Annex 2 No 1 of the Data Protection Act of 25 Sept. 2020, in force since 1 Sept. 2023 (AS 2022 491; BBl 2017 6941).

b. Right to information or access in connection wi

Art. 130a

Actions to enforce the right to information or access in connection with the processing of personal data may be brought before the courts mentioned in Article 129.

Art. 133 — Inserted by Annex No II 3 of the Nuclear Energy Liability Act of 13 June 2008 (AS 2022 43; BBl 2007 5397). Amended by Annex 2 No 1 of the Data Protection Act of 25 Sept. 2020, in force since 1 Sept. 2023 (AS 2022 491; BBl 2017 6941).

3. Direct action against an insurer

Art. 131

A direct action against a civil liability insurer may be brought before the Swiss courts either at the place of the insurer’s establishment or at the place where the act or the result occurred.

II. Applicable law

1. In general

a. Choice of law

Art. 132

The parties may, at any time after the damaging event, agree to apply the law of the forum.

b. Absence of a choice of law

Art. 133

1 If the tortfeasor and the injured party have their habitual residence in the same state, claims in tort are governed by the law of that state. 2 If the tortfeasor and the injured party do not have their habitual residence in the same state, these claims are governed by the law of the state in which the tort was committed. However, if the result occurred in another state, the law of that state applies if the tortfeasor should have foreseen that the result would occur there. 3 Notwithstanding the preceding paragraphs, if a tort violates a legal relationship existing between the tortfeasor and the injured party, claims based on that tort are governed by the law applicable to such legal relationship.

2. In particular

a. Road traffic accidents

Art. 134

Claims arising from road traffic accidents are governed by the Hague Convention of 4 May 1971 on the Law Applicable to Traffic Accidents.

SR 0.741.31

b. Product liability

Art. 135

1 Claims based on a defect or defective description of a product are governed at the option of the injured party: a. by the law of the state in which the tortfeasor has their establishment or, in the absence of such establishment, their habitual residence; or b. by the law of the state in which the product was acquired, unless the tortfeasor proves that the product was introduced in the market of that state without their consent. 2 If claims based on a defect or defective description of a product are governed by a foreign law, no compensation may be awarded in Switzerland beyond that which would be awarded for such kind of loss or damage pursuant to Swiss law.

c. Unfair competition

Art. 136

1 Claims based on unfair competition are governed by the law of the state in whose market the result occurred. 2 If the tort affects exclusively the business interests of a specific competitor, the applicable law is that of the state where the respective establishment is located. 3 Article 133, paragraph 3, is reserved.

d. Restraint of competition

Art. 137

1 Claims based on a restraint of competition are governed by the law of the state in whose market the restraint has direct effects on the injured party. 2 If claims based on a restraint of competition are governed by a foreign law, no compensation may be awarded in Switzerland beyond that which would be awarded for a restraint of competition pursuant to Swiss law.

e. Nuisances

Art. 138

Claims arising out of damaging nuisances originating from immovable property are governed at the option of the injured party by the law of the state in which the property is located or by the law of the state in which the result occurred.

ebis. Nuclearincidents

Art. 138a

1 Claims arising from nuclear incidents are governed by Swiss law. 2 If the nuclear installation of the operator liable is located in a contracting state to the Paris Convention, the law of that contracting state determines: a. whether the liability of the operator for nuclear damage extends beyond the scope specified in Article 2 paragraph (b) of the Convention; b. whether and to what extent compensation is given for nuclear damage in the cases mentioned in Article 9 of the Convention. 3 Paragraph 2 applies by analogy to the operator of a nuclear installation that is not located in a contracting state to the Paris Convention provided this state provides at least equivalent rules in relation to Switzerland.

Art. 138a — Inserted by Annex No II 3 of the Nuclear Energy Liability Act of 13 June 2008, in force since 1 Jan. 2022, published 27 Jan. 2022 (AS 2022 43; BBl 2007 5397). Para. 2 — SR 0.732.44

f. Infringement of personality rights

Art. 139

1 Claims based on the infringement of personality rights by the media, in particular by press, radio, television or any other means of public information, are governed at the option of the injured party: a. by the law of the state in which the injured party has their habitual residence, provided the tortfeasor should have expected that the result would occur in that state; b. by the law of the state in which the tortfeasor has their establishment or habitual residence; or c. by the law of the state in which the result of the infringement occurs, provided the tortfeasor should have expected that the result would occur in that state. 2 The right of reply against media appearing periodically is exclusively governed by the law of the state in which the publication appeared or the program was broadcasted. 3 Paragraph 1 also applies to infringements of personality rights resulting from the processing of personal data, as well as to impairments of the right of access to personal data.

Para. 3 — Inserted by Annex No 3 of the FA of 19 June 1992 on Data Protection, in force since 1 July 1993 (AS 1993 1945; BBl 1988 II 413).

3. Special rules

a. Multiple tortfeasors

Art. 140

If two or more persons have taken part in the commission of a tort, the applicable law shall be determined separately for each one of them, regardless of their role.

b. Direct action against an insurer

Art. 141

The injured party may bring the action directly against the insurer of the person liable if the law applicable to the tort or the law applicable to the insurance contract so provides.

4. Scope of the applicable law

Art. 142

1 The law applicable to a tort determines in particular the capacity to be liable in tort, the conditions and the extent of liability, as well as the person liable. 2 Rules of conduct and safety in force at the place of the act are taken into consideration.

Section 4 Common Provisions

I. Multiple debtors

1. Claims against several debtors

Art. 143

Where a creditor is entitled to assert their claim against two or more debtors, the legal consequences are determined under the law governing the relationship between the creditor and the debtor against whom the claim is actually asserted.

2. Recourse among co-debtors

Art. 144

1 A debtor has a right of recourse against a co-debtor, either directly or by subrogation, only to the extent that the laws governing the two obligations allow for it. 2 The exercise of recourse against a co-debtor is governed by the law applicable to the obligation of the co-debtor towards the creditor. Issues pertaining exclusively to the relationship between the creditor and the debtor seeking recourse are governed by the law applicable to the obligation of the latter. 3 The question of whether an institution entrusted with a public function may seek recourse is determined by the law applicable to the institution. The existence and exercise of a right of recourse are governed by the two preceding paragraphs.

II. Transfer of claims

1. Assignment by contract

Art. 145

1 The assignment of a claim by contract is governed by the law chosen by the parties or, in the absence of such choice, by the law applicable to the assigned claim. A choice of law cannot be asserted against the debtor without the latter’s assent. 2 A choice of law relating to the assignment of an employee’s claim is valid only to the extent that Article 121 paragraph 3 allows it for the employment contract. 3 The form of an assignment is governed exclusively by the law applicable to the assignment contract. 4 Issues concerning exclusively the relationship between the parties to the assignment contract are governed by the law applicable to the legal relationship underlying the assignment.

1a. Transfer by means of an instrument

Art. 145a

1 Whether a claim is represented by an instrument in paper or equivalent form and transferred by means of such instrument is determined by the law designated therein. If no law is designated in the instrument, the law of the state in which the issuer has its seat or, failing such, its habitual residence applies. 2 As regards rights in rem to a physical instrument, the provisions of Chapter 7 are reserved.

Art. 145a — Inserted by No I 3 of the FA of 25 Sept. 2020 on the Adaptation of Federal Law to Developments in Distributed Ledger Technology, in force since 1 Feb. 2021 (AS 2021 33; BBl 2020 233).

2. Assignment by operation of law

Art. 146

1 The assignment of a claim by operation of law is governed by the law applicable to the underlying relationship between the former and the new creditor or, in the absence of such a relationship, by the law governing the claim. 2 The provisions of the law governing the claim that are intended to protect the debtor are reserved.

III. Currency

Art. 147

1 A currency is defined by the law of the issuing state. 2 The effects of a currency on the extent of an obligation are governed by the law applicable to such obligation. 3 The law of the state in which payment must be made determines the currency in which the payment must be effected.

IV. Statute of limitations and extinction of a cla

Art. 148

1 The statute of limitations for and the extinction of a claim are governed by the law applicable to the claim. 2 In the event of extinction by set-off, the applicable law is that governing the claim against which set-off is asserted. 3 Novation, release and set-off agreements are governed by the provisions of this Act relating to the law applicable to contracts (Art. 116 et seq.).

Section 5 Foreign Decisions

Art. 149

1 Foreign decisions relating to a claim under the law of obligations are recognised in Switzerland: a. if they were rendered in the state of the defendant’s domicile; or b. if they were rendered in the state of the defendant’s habitual residence, insofar as the claims relate to an activity carried out in such state. 2 They are also recognised: a. if the decision relates to a contractual obligation, was rendered in the state of performance of the characteristic obligation, and the defendant was not domiciled in Switzerland; b. if the decision relates to a claim under a contract concluded with a consumer, was rendered at the consumer’s domicile or habitual residence, and the requirements provided in Article 120 paragraph 1 are met; c. if the decision relates to a claim under an employment contract, was rendered either at the place of the establishment or at the place of work, and the employee was not domiciled in Switzerland; d. if the decision relates to a claim arising out of the opera

Para. 2 let. a — Amended by Art. 3 No 3 of the FD of 11 Dec. 2009 (Approval and Implementation of the Lugano Convention), in force since 1 Jan. 2011 (AS 2010 5601; BBl 2009 1777). Para. 2 let. f — Amended by Annex No II 3 of the Nuclear Energy Liability Act of 13 June 2008, in force since 1 Jan. 2022, published 27 Jan. 2022 (AS 2022 43; BBl 2007 5397).