As a general rule, Swiss law provides that contracts are governed by the law chosen by the parties. Swiss substantive law upholds to the maximum the principle of freedom of contract. For example, the parties are in principle free to establish the content of the contractual provisions, the conditions of the contract and the consequences of non-performance (i.e. conditions and effects of breach). The formation of a contract in principle does not presuppose formalities in any kind.
In practice, Swiss law is one of the most commonly applied governing law in international commercial contracts.
Switzerland has a long tradition in international arbitration and is one of the world’s arbitration hubs.
