The Importance of General Terms and Conditions (GTC) for Young Businesses in Switzerland

What are General Terms and Conditions?

GTCs are standardised contractual clauses that regulate business relationships. They define rights and obligations between contracting parties and provide a legal framework for transactions. Examples include payment terms, delivery deadlines, liability clauses, and choice of jurisdiction. Using GTCs saves time and money by avoiding the need to draft individual contracts repeatedly.

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Legal protection

In Switzerland, business relations are governed by the Code of Obligations (CO). However, the CO only provides general rules. Well-drafted GTCs fill the gap with tailored provisions that fit the company’s model. For instance, a company can limit liability for delays or damages to a fixed amount. Clauses must comply with the law to be valid; unfair terms can be challenged in court.

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Uniformity and efficiency

Standardised GTCs streamline processes. For example, an online retailer can specify shipping partners and return conditions in its GTCs, reducing negotiation time. Clear terms also build customer trust and improve loyalty.

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Special benefits for young companies

Start-ups benefit from GTCs by establishing professionalism, saving resources, and reducing legal risks. Clear terms inspire trust, helping overcome hesitation in signing contracts. They also guide companies in setting payment terms, delivery conditions, and liability clauses.

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Drafting and maintaining GTCs

Creating GTCs requires legal expertise. Businesses should work with a lawyer to ensure compliance and fairness. GTCs should be reviewed regularly to stay up-to-date with laws and market changes.

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Conclusion

GTCs are a must-have for businesses in Switzerland. They provide legal security, efficiency, and transparency. For young companies, they ensure a professional start and long-term success.

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