Federal Act on Private International Law (PILA)

Art. 117PILA from 2022

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.