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Table of Contents

Definition of Law (Public – Private) ........................................................................................................ 6
The Law of Persons................................................................................................................................ 6
Code of Obligations / Companies........................................................................................................... 7
Limited Liability Companies:............................................................................................................... 7
Joint Stock Corporation................................................................................................................... 7
Limited Liability Company................................................................................................................ 7
Unlimited Liability Companies:............................................................................................................ 7
Partnership in Collective Names...................................................................................................... 7
Limited Partnership.......................................................................................................................... 7
Property.................................................................................................................................................. 7
Types of property................................................................................................................................ 7
Types of ownership............................................................................................................................. 8
Joint Ownership............................................................................................................................... 8
Tenancy in Common....................................................................................................................... 8
Flying Freehold................................................................................................................................ 8
Time Share...................................................................................................................................... 8
Charges on Property........................................................................................................................... 8
Charges on REAL PROPERTY....................................................................................................... 8
Contracts................................................................................................................................................ 9
Components of an enforceable contract:.......................................................................................... 10
Contracts voided or avoided.............................................................................................................. 10
Warranties given in case of transfer of goods:..................................................................................11
Essential hospitality contract clauses: receiving products and services........................................12
Remedies and consequences:...................................................................................................... 12
Preventing breach of contract:....................................................................................................... 12
Credit Sales, Cash Sales, Hire Purchase, Leasing...............................................................................12
Purchase contract general remarks184............................................................................................ 12
Credit sale by installment CO226a (Long-term Credit sales).........................................................12
Different types of leasing................................................................................................................... 13
Car leasing.................................................................................................................................... 13
Disadvantages of Leasing............................................................................................................. 13
E-Commerce......................................................................................................................................... 13
Issues about E-contracts................................................................................................................... 13
EU and E-commerce......................................................................................................................... 14
Misleading advertising................................................................................................................... 14
Data protection.............................................................................................................................. 14
Specific requirements about E-contracts include:..........................................................................14
Unfair terms in consumer contracts............................................................................................... 14
Payments....................................................................................................................................... 14
The EU and E-Commerce:................................................................................................................ 14
Directives on misleading advertising ............................................................................................ 14
Consumer rights to:....................................................................................................................... 14
Commercial Rental Agreements........................................................................................................... 14
Leases: Step 1, obligations of the 2 parties.......................................................................................14
Leases: Step 2, problems that can occur.......................................................................................... 15
Leases: Step 3, end of the lease agreement.....................................................................................15
Extension of lease......................................................................................................................... 15
Termination of lease: .................................................................................................................... 15
Premature termination of lease...................................................................................................... 15
1- At the beginning............................................................................................................................ 15
Lessor must:.................................................................................................................................. 15
Lessee must:................................................................................................................................. 15
Comminatory period:..................................................................................................................... 15
2- During the Lease........................................................................................................................... 16
Defects in object ........................................................................................................................... 16
Subsequent defects....................................................................................................................... 16
Serious defects the tenant may after suitable time limit for repair:................................................16
Medium defects............................................................................................................................. 16
Pressure on lessor to do something/repair........................................................................................ 16
Lessee must:................................................................................................................................. 16
Right of retention........................................................................................................................... 17
Subletting 262................................................................................................................................ 17
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At the end of the lease agreement.................................................................................................... 17
Premature Termination of the Lease................................................................................................. 17
Accommodation Contracts.................................................................................................................... 18
Yield management:........................................................................................................................... 18
Is it legal?...................................................................................................................................... 18
Fair practices:................................................................................................................................ 18
Reducing no-shows:...................................................................................................................... 19
Management Contracts........................................................................................................................ 19
The 2 parties involved are:................................................................................................................ 19
The operator.................................................................................................................................. 19
The owner...................................................................................................................................... 19
Advantages of management contracts for operator:......................................................................19
Disadvantages for operator:.......................................................................................................... 19
Types of management contracts:...................................................................................................... 19
Category 1..................................................................................................................................... 19
Category 2:.................................................................................................................................... 19
Franchise Agreements.......................................................................................................................... 20
Services offered by franchisor:.......................................................................................................... 20
Different types of fees....................................................................................................................... 20
Monthly fees: ................................................................................................................................ 20
Advertising fees............................................................................................................................. 20
Training fees.................................................................................................................................. 20
EU and the Hospitality Industry Laws and Regulations........................................................................20
Regulations in Place regarding......................................................................................................... 20
Laws in Place regarding ................................................................................................................... 20
Overall Benefits of the EU................................................................................................................. 21
Civil Liability.......................................................................................................................................... 21
Definitions......................................................................................................................................... 21
Civil Liability................................................................................................................................... 21
Tort................................................................................................................................................ 21
Duties and Obligations of a Hotel Manager.......................................................................................21
Duties of CARE............................................................................................................................. 21
Different Types of Liability................................................................................................................. 21
Fault Based Liability .................................................................................................................. 21
Contractual Liability....................................................................................................................... 22
Statutory Liability in Switzerland.................................................................................................... 22
What has a Injured Party to Prove?.................................................................................................. 22
Liability of Hoteliers........................................................................................................................... 22
Hoteliers are responsible for ......................................................................................................... 22
Liability for Valuables..................................................................................................................... 22
Parking in Switzerland and Corresponding Liability..........................................................................23

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.................................................................14 -3- ........................................................... 13 Issues about E-contracts............................................. 12 Preventing breach of contract:................................................. 9 Unconscionability 21.......................................................................................................................................................................................................................................................................................................................................... 13 EU and E-commerce................................................................................. 8 Tenancy in Common.........................12 Creditor can impose a time period in that seller has to fix damage CO107... 7 Property................................................................ 8 Flying Freehold................................................................ 6 The Law of Persons.....................................................................................................................................................................................11 Warranty on defects in goods sold Article 210........................................................................................ 7 Types of ownership............................................................................................................................ 9 Liability of company owner 58..................................12 Essential hospitality contract clauses: receiving products and services......................................................12 Remedies and consequences:...........................................................................................................9 Displaying goods with prices shown 7 (3)............Code of Obligations Definition of Law (Public – Private) ................................................................................................................................................... 9 Sending of price lists 7(2).................. 14 Misleading advertising..................................................................................................................................................................................... 14 Specific requirements about E-contracts include:............................................................................................................................................................................................................................................................................... Hire Purchase.................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 9 In absentia 5........ 7 Types of property..............................................................9 Offer without obligation 7(1)...........................................11 Seller must pay damages if he is responsible CO97............................................................................................ 9 Time limit: 3.......................................... 8 Time Share.................12 Different types of leasing... 6 Code of Obligations / Companies.............................................................................................................................................................................................. 9 Telephone contract 4 (2)................................................. 13 Car leasing................................................................... Leasing.... 9 Mutual agreement 1..................................................................................................................................................................................................... 9 Unjust enrichment 62............................................................................. 13 Disadvantages of Leasing................................. 9 Liability of shop owner 55............................................................................ 8 Contracts.. 9 Receipt of goods which were not ordered 6 (a)............................................................................ 9 Liability for animals 56....................... 9 Revocation to offer/counter offer 9................................... 8 Charges on REAL PROPERTY................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 9 Door to door sales 40 (a-f).......................................................................................................................................................................................................................................................................................................................... 7 Partnership in Collective Names................................................................................................................................... 24....................... 10 Warranties given in case of transfer of goods:............12 Purchase contract general remarks184....................... 9 Components of an enforceable contract:.................................. 8 Charges on Property............................................................................................................................. 10 Contracts voided or avoided....................................................................... 12 Credit sale by installment CO226a (Long-term Credit sales)......................................................................................................................................... Cash Sales............................... 7 Limited Liability Companies:................................................................................................................................................................................................................................ 5..................................................................................................................................................................................... 14 Data protection......... 7 Joint Stock Corporation...................................... 12 Credit Sales..................................................... 9 Material error 23.................................................................................................................................... 9 Fraud and deception 28...... 13 E-Commerce.............................................11 Warranty of clean title (seller is allowed to sell the product) Article 192/193..................................................................................... 9 Material duress 29................................................................................11 Detected Faults have to be reported immediately Article 201.................................... 7 Limited Partnership................................. 7 Unlimited Liability Companies:...................................................................12 No time limit is required when performance would not be useful anymore CO108................................................................................................................................................................................................................ 9 Nullity 20................................................................................................................................................................................................. 8 Joint Ownership......................................................................................... 7 Limited Liability Company.. 9 Tort 41.......................................................

............................. 19 Management Contracts..... 17 Time allowed...................................... 16 Serious defects the tenant may after suitable time limit for repair:........................................... 15 Damages and interest 259 e........................................................... 19 Advantages of management contracts for operator:......................................... 15 Lessee needs to pay rent 257...................................................................................................................................... 17 At the end of the lease agreement................................................................................................................................................................................................................... 15 273 ....15 Extension of lease.............................. 18 Reducing no-shows:.......................... 18 Yield management:..................... end of the lease agreement......................................................... 19 The operator............................................................................. 16 Right of retention..15 repairs107.. problems that can occur........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 15 Lessee must:................................... 19 Category 1....................................................................................................................................................................................17 Termination of lease 266 CO............................................................................................................................................................... 20 Advertising fees................................................................................................................... 17 Accommodation Contracts.....................At the beginning......................................................................................................... obligations of the 2 parties.... 15 2........................................................ 15 1.................... 18 Is it legal?....................................................................................................................................................................................................................................................................................................................................................................................................................................... 20 Monthly fees: .................................................. 15 Deposit laws 257 (e)......................................................... 14 Leases: Step 1........................................................................................................................................................................................................... 14 Consumer rights to:................................................................................................................................................................................................. 15 Duration/rental relationship can be definite or indefinite (time) 255................................ 14 Commercial Rental Agreements.............................................................................................. 16 Defects in object . 19 The 2 parties involved are:........................ 15 Extension 272.................................................................................................................................................................................... 17 5 impossible cases.......... 20 Different types of fees................................................................................................................................. 14 Payments................................................. 18 Fair practices:..............................................During the Lease......................................................... 17 Premature Termination of the Lease................................................................................................. 15 Care and consideration (careful usage of the accommodation) 257 (f)....................................................................................15 Non performance or imperfect performance of the contract at the time of the transfer of the object 258.......................Unfair terms in consumer contracts...................................................................................................................... 15 Premature termination of lease...........................................................................................................................................273(2)(a) 273(2)(b)-30 days or 60 days..................................................................... 16 Lessee must:.......................................................................................................................................................................................................................................................................................................................................................................................... 17 Subletting 262.................................................16 Medium defects......................................................................................... 15 Lessor must:.............................................................................................................................................................................................................................................................................................................................................................. 20 -4- .................................................................................................................................................................................................................. 20 Training fees.......14 Leases: Step 2............................................................................................................................................................................................................................................................................................................................................................ 16 Subsequent defects...............................................................................................................................19 Disadvantages for operator:......................................................................................................................................................................................................................................................... 19 The owner............... 15 Termination of the contract 259 a b.... 19 Category 2:.......................................................................................................................................................................................109.......................................................................................................................... 15 Deposit of the rent 259 g............ 19 Types of management contracts:............................................................. 19 Franchise Agreements..................................... 14 The EU and E-Commerce:..................................................................................................................................................................................... 20 Services offered by franchisor:...................................... 15 Lesson or suppress rent 259 d.................. 15 Termination of lease: .............................................................................................. 15 Lodge rent 259 g-I................................................................. 14 Directives on misleading advertising .................................. 15 Leases: Step 3.............................................................272 (a).......................................... 16 Pressure on lessor to do something/repair......................................................................... 15 Suitable conditions for use 256........................................................................................ 15 Comminatory period:.............................

............................................................. 20 Overall Benefits of the EU................................................ 22 Liability of Hoteliers.................................................................................................... 21 Definitions...................................................................................................... 21 Civil Liability.............................................. 21 Different Types of Liability.............................. 20 Laws in Place regarding ................................................................................................................................................................................................................................ 21 Tort................................................................................................................ 21 Civil Liability......................................................................................................................... 23 None could have deposit contract 472.................................................................................................................................................................................................................................... 22 Also responsible for Damage to a Client Article 101 ................................ 21 Fault Based Liability ..................................................................22 Personally kept Valuables are Treated as other EFFECTS (1000 CHF Limit Article 488-3...............................................................................................21 Contractual Liability.......................................................................................23 Ditto – 487 .........................................22 The OWNER of BUILDINGS and STRUCTURES Article 58 .......................EU and the Hospitality Industry Laws and Regulations............................................................................................................................................................................................................................................................................... 22 DETERIORATION Article 487............................................................................................................................................................. 22 If NOT Deposited with In-Keeper ONLY liable if Fault Article 488-1 ........ 22 DESTRUCTION Article 487..............................................................................................................................................................................22 What has a Injured Party to Prove?............................................................................................................................................................................................................20 Regulations in Place regarding................................................................................................................................................................................................. 22 Keeper of Animal Article 56................................................................................................22 Parking in Switzerland and Corresponding Liability......................... 22 The EMPLOYER Article 55 ..................................................................................................22 If DEPOSIT was REJECTED by Hotel  Total Liability Article 488-2 .23 Hotel deposit-ordinary personal effects – 487.................................23 -5- ............ 22 THEFT Article 487........................ 22 Head of Family Article 333...................................................................22 They restaurant OWNER takes the EFFECTS and GIVES a RECEIPT Article 472................................................................................................................. 22 Hoteliers are responsible for .................................................................... 22 Statutory Liability in Switzerland........................................................21 Duties of CARE...... 21 Duties and Obligations of a Hotel Manager...................................................................................................................................... 21 The injured Party has to prove Article 41 .....................................22 Liability end when HOTEL was not informed Immediately of LOSS Article 489........................................................................................................................................................ 22 Liability for Valuables...............

Misdemeanors.Definition of Law (Public – Private) As a manager. freedom of religion. protection of picture and voice. comparative law (laws of different countries) The Law of Persons Physical persons: civil capacity = enjoyment + exercise of civil rights E. human rights) Criminal/Penal Law (Deals with all aspects of crime. does it hurt anyone. am I being honest. Age. would I publish my actions.g. the person with a trustee can still sign agreements and contracts. individual) how the state is organized: • • Constitutional (Interpretations of Constitution e. taxes) • Procedural (deals with the procedure used in civil and criminal matters) o Can a wife testify against her husband o Must a witness take an oath o Can children give evidence in court o How do you serve a summons on a witness Private law (private vs. educate. privacy. race or ethnic origin Exercise of civil rights is determined by age and/or discretion (To have discretion = ability to sign. right of life. international treaties) Jurisprudence (judges’ laws) (laws that are build on previous cases and rulings) Authors (specialists. executive orders. statutes. teach. legal in terms of the law. F&B licenses.g. sexual orientation. manage) Is an action ethical ?: Is it legal. bureaus. Strafrecht) o No one can be punished unless they have committed an act the law expressly forbids o Felonies. but needs some help) Legal advisor Legal persons: associations and foundations referred to in the law of persons (companies in the Code of Obligations) -6- . entering contracts • Code of Obligations National. international. building permits. disability. integrity (no one can harm you physically or mentally). Contraventions (small crimes against rules) • Administrative describes the principles that apply to government agencies. you can be punished) Supervision (in case of limited exercise of civil rights): • • • Guardian (if you don’t have the right to enter into contracts or agreements) Trustee (acts on your behalf. knowing some basics of law in order to prevent problems (prevention philosophy) STEM (select. who know a lot about the topics) European Public law (state vs. would I care if it happens to me. private): • Succession law (inheritage (Erbrecht)) • Law of property • Family law • Law of persons (when is a person a legal person. boards and commissions (protects citizens against arbitrary administrative acts e. equality between men and woman. right to inherit. is it fair.g. what if everyone did it The sources of law: • • • • • Customary (customs) (laws that are not written down) Gewohnheitsrecht Written (constitutions. equality.

• • Associations: minimum of 3 persons.g. non-economic aim. museums Code of Obligations / Companies Limited Liability Companies: Joint Stock Corporation • A common name • Capital Stock divided into Shares • Shareholders have NO liability for debts (besides their shares) • Incorporation by registration in the ROC (Chamber of Commerce) • Certification by a public NOTARY • 3 or more shareholders at the day of incorporation • 3 obligatory bodies o Board of Directors o General Meeting o Auditors Limited Liability Company • Predetermined Share Capital • A own Name • Certification by a public NOTARY • Right of every Partner depends on his/ her value of Share • Every Associate is personally. computers) Real: immoveable (ownership noted in the Land Register e. obligatory organs board of directors).g. non-economic aim.g.g. Land. • Management by associate or delegated person • 2 obligatory bodies o General Meeting o Directors Unlimited Liability Companies: Partnership in Collective Names • Compulsory registration at the ROC (Chamber of Commerce) • Partnership Contract • Assets of Partners --. Red Cross. articles of association have to be stated (aim. State). kindergarten Foundations: assets set aside for particular purpose (EHL). chairs. supervisory body (e. jointly and severally LIABLE for debts of the company. cars.g. forest. Bank Loan) Property can be: -7- .Business is directly owned by Partners • Partners are only liable for debts originating from the partnership • BUT therefore JOINT. BUT ONLY to the extent of registered CAPITAL not paid up. houses. doesn’t need to be registered in the register of commerce e. possible of “Retention of Title” possible (sale on Credit. fund. mines). EHL. must be registered in Register of Commerce e. soccer. SEVERAL and SUBSIDUARY LIABLE on all open ASSETS Limited Partnership • Compulsory registration at the ROC (Chamber of Commerce) • 2 TYPES of Partners o Active (TOTALLY LIABLE) o Silent (ONLY Liable for the AMOUNT Contributed silently) Property Types of property • • Personal=chattel: moveable property (e.

g.• • • • Tangible (any movable good) Intangible (Brand Name/ Royalties = Marktwert) Fungible (being easily to replace. stolen → you can use the property. not in certain parts  Statute of Contract regulates the Management  Separation/ Share by Liquidating (Sale) or Terminating the Community Tenancy in Common • Each owner owns a SHARE of the thing as a whole • Each owner can dispose on his share as they wish • Property managed JOINTLY • Major decisions have to be made UNANIMOUSLY e. “set aside good”) Difference between possession and ownership • Possession: leased. e.g. everyday good) NON-Fungible (impossible to replace. but cannot freely dispose of it (e. Thereby the debt is enforceable against any asset of the borrower o ONE BUILDING can be used as SECRITY for a NUMBER of DEBTS o ALWAYS tied to an INTEREST-RATE o USUALLY no TOTAL Mortgages possible. rented. an antique. destroy it Types of ownership Sole Ownership (you own alone) • Joint Ownership • A number of persons from a “community under statute” or under a contract • Every person has a right in the property as a “WHOLE”. certain % of needed money has to be available in CASH -8- .g. e. cars) Right of Retention (to keep a good. the car…) • The right of the creditor to keep an object belonging to the debtor • A Connection between the OBJECT and the DEBT has to be detectable Charges on REAL PROPERTY • Mortgages o Contract between the lender (bank) and the borrower o A charge registered on a property to secure a personal loan. sell) • Ownership: property belongs to you. therefore you can sell it. sale Flying Freehold • Type of Common Property • Each co-owner has the right to the exclusive use and disposal of certain premises • Community of co-owners have to statute the rules of management Time Share • Each person involved bought the right to spend a set period once a year in a holiday property for 3 years or longer • EU Time-Share Regulation o 10 day cooling-off period after contract is made o Exact address and payment information required o accurate description and completion date for the property. not in certain parts • Statute of Contract regulates the Management • Separation/ Share by Liquidating (Sale) or Terminating the Community Joint Ownership  A number of persons from a “community under statute” or under a contract  Every person has a right in the property as a “WHOLE”. inherit.g. borrowed. price to be paid Charges on Property A charge/lien (Pfandrecht) is a right that a creditor has on an object securing his or her right against the debtor or a third party Charges on CHATTELS (personal/moveable goods e.g.

g. only possible to obtain BEFORE Property is ACQUIRED!!! • In SWITZERLAND zoning and construction restrictions/ permits have to be obtained Restrictions on purchase/sale of land Authorization requirement for non-residents.10 year ban on resale. permits valid 3 years Contracts Mutual agreement 1 Time limit: 3. if permit subject to conditions they are entered on Land Register. a foreign hotel chain…) • Business establishment – 10 year ban on resale • Possibly entry in land registry • PERMIT (valid 3 years) follows certain procedure.RESTRICTIONS for FOREIGNERS • Authorization/ PERMIT required for NON-RESIDENTS • ALSO for the creation of COMPANIES • Limitation on number of PERMITS (holiday homes) • Also permit required if a person wants to acquire property for the purpose of following their own line of business (e. 24 Material duress 29 Door to door sales 40 (a-f) Tort 41 Liability of shop owner 55. order of priority) Property in Switzerland --.Restricted Property Rights . Certain procedures to be followed to obtain permits. can’t be transferred) • building rights (right to built on property (even if not owner).Servitudes = right of usage Servitudes: Right of way Personal Servitudes • Life tenancy. 5 Telephone contract 4 (2) In absentia 5 Receipt of goods which were not ordered 6 (a) Displaying goods with prices shown 7 (3) Offer without obligation 7(1) Sending of price lists 7(2) Revocation to offer/counter offer 9 Nullity 20 Unconscionability 21 Fraud and deception 28 Material error 23. and right to receive compensation when giving property back to owner) • right of residency Transfer of Real Property • Capital gain tax • Succession taxes • Taxes on gifts. stamp duty tax Mortgages = charge registered on a property as a security for a personal loan – interest rate (same building can be used as security for number of loans. permit to be obtained before transaction complete. including companies Limitation in number of permits Zoning restrictions Building/construction permits In Switzerland: Permanent business establishment. licenses (right to stay in a place for a life time. Liability for animals 56 Liability of company owner 58 Unjust enrichment 62 -9- .

intention to be legally bound.10 - . tacit Art. sending a price list. the contract can exist for a period of time Unconscionability i. oral. anyone can bring the action CO20 Annulment: there are time limits. UK): payment exchanged for the promise contained in the contract Offer or invitation to treat Good in a Window: CH = Offer Common Law Countries = Invitation to Treat (stage before offer) Consumer protection: contracts concluded under unusual circumstances (e. Ireland. Contract definition (CH): For a contract to be concluded a manifestation of the parties mutual consent is required Art.g.Contract definition (US): An agreement or promise made between two or more parties that the courts will enforce. capacity (only eligible (berechtigte) people can make contracts. US also Consideration • Offer: a proposal to perform an act or to pay an amount that. only the injured party can bring the action. immoral →the contract never existed. constitutes a legally valid contract o Face-to-face or at-a-distance o With or without a time limit o In absentia: e. to establish terms/conditions and penalties in case of breach Form of contracts: written. intoxication: contract signed during moment of weakness. obligation o Sending price list o Counter offer Offer in Common Law Countries • Time limit only enforceable if deposit is made by the buyer Contractual terms: expressed or implied (not specifically agreed by implied by statute. illegal. e.g. no time limit to bring action. No children) Components of an enforceable contract: In Switzerland: offer + acceptance = Contract In UK. if accepted. 1 Freedom of contract: to conclude. offer without obligation o In CH an offer with or without time limit is binding for a certain period of time o In UK an offer is only binding if an deposit is made • Acceptance: unconditional agreement to the precise terms and conditions of an offer – does not have to be expressly stated • Consideration (only in US. Ireland. to choose the parties. common or customary law) Contracts under unusual circumstances • Door to Door Sales CO40a-f • Receipt of Goods that were not ordered CO6a Contracts voided or avoided • • • Nullity: impossible.o. receipt of goods which were not ordered) Offer in Switzerland • Face to face (persons are present) • Telephone • Presence of another person o thereby the offer is only VALID as long as the persons/ call is present • With time limit o offeror is bound to the given limit of time-span • In Absentia o Displayed good with price tag o Offer w.e.1 (2) Contracts have to fulfill: Legal purpose (be in accordance with local laws). ignorance CO21 . displaying goods with corresponding prices. door-to-door sales.g.

Usually condition is that the buyer has to pay for goods before title passes GB Warranty & defects Sale of Goods act Section 12 assumption the seller has the right to sell the goods. black mail CO29 Lesson 8: Contracts (continued) Warranty for defects 201 buyer (or receiver) needs to check visibility and function and take immediate action if wrong 210 automatic warranty of 1 year.24 Material duress: e.g. code error on a ordering form CO23.11 - Articles 97/107/108 . depending on fungible or non-fungible type of good) Class of Goods CH fungible Non fungible France Germany GB non fungible fungible Title passes on taking possession on taking possession on conclusion on taking possession on conclusion Risks and benefits on taking possession on conclusion on conclusion on taking possession on conclusion when goods become fungible when goods become fungible Non fungible: specific items that might have been set aside (2nd hand car) Fungible: goods that can be easily replaced Romalpa clause: Reservation of title clause by seller. BUT UPON RECEPTION Delivery Dates Deadline and Specification for delivery has to be obeyed Breach of Contract .g. on conclusion of contract.g. Warranties given in case of transfer of goods: • • Transfer of title and passing of risks and benefits Warranty of clean title : The seller guarantees to the buyer that he has the right to sell the property as he has the right to the object • Warranty for defects : time limit. tinned “fresh” fruit salad Section 14 implied condition as to satisfactory quality and fitness to use Quality of goods implies – fit for purpose Free from minor defects. to be specified in writing o 1 year even if discovered later Detected Faults have to be reported immediately Article 201 o If not  Acceptance of Faults o Visible Check = Immediately o Functioning Check = Later (at home). otherwise full refund or price paid Section 13 implied condition as to description e. even if buyer is in possession. Safe durable Warranties Switzerland Warranty of clean title (seller is allowed to sell the product) Article 192/193 Warranty on defects in goods sold Article 210 o 1 year o If less or more. visible or functioning defect • Delivery dates → Issue: When does transfer of risks and benefits occur ? (on taking possession. The seller may stipulate in contract the intention to retain ownership of goods until contract fulfilled.• • • Fraud and deceptions CO28 Material error: e. If nothing specifically mentioned CO199 Warranty CO192/193 The seller guarantees to the buyer that he has the right to sell the property as he has the right to sell the property as he has the right to the object.

sale on account and agency • One person furnishes another with a chattel for some/all of its working life .g. intention from the vendor to surrender the property → payment of installments • Agreement between TWO parties • Possession until all the payments are made → ownership only when complete payments • Intention to buy is sine qua non (absolute prerequisite) • Non-nominative (rules are not in CO) contract. Hire Purchase. written. tacit contract • Cash • Credit card • Cheque • Payment in X parts Credit sale by installment CO226a (Long-term Credit sales) • Nominative contract (qualified form necessary) • Initial Payment (insisted) • Duration of contract strictly controlled • Issue of consumer protection • Items for personal/domestic use Hire purchase = intention to purchase from the taker.12 - . Leasing Purchase contract general remarks184 Cash sale: immediate transfer of title → oral. Cash Sales. plumber services) • Indemnification • Nonperformance clauses • Dispute resolution terms Breach of contract = failure to keep the promises or agreements of a contract Remedies and consequences: o Suit for specific performance o Liquidated damages o Economic loss o Alternative dispute resolution Preventing breach of contract: o Get it in writing o Read the contract thoroughly o Keep copies of all contract documents o Use good faith when negotiating contracts o Note and calendar time deadlines for performance o Ensure the performance of third parties o Share contract information with those who need to know.Seller must pay damages if he is responsible CO97 Creditor can impose a time period in that seller has to fix damage CO107 No time limit is required when performance would not be useful anymore CO108 Essential hospitality contract clauses: receiving products and services • Payment terms • Delivery or start date • Completion date • Performance standards • Licenses and permits (e.) Leasing = mixed contract involving elements of hire. • fixed duration • No particular FORM in Switzerland (written/oral or Tacit. and educate staff on the consequences of contract breach Credit Sales. right to buy conferred to the property.

has to be coherent with the local laws and in case of legal action the court should accept it o Handling. and the customer who leases the car) The lessee assumes the risk (bears the warranty) Different types of leasing • • • • Production leasing: IT equipment. lessee (e. US) Jurisdiction: cyberspace… which law governs the contract? → insert a jurisdiction clause. agent. workplace. public) contracts • Consumer protection: 7 days revocation period 40a • Seller Must inform buyer of this right • Seller Must give his name & address Issues about E-contracts • • • • • • • Privacy: US self-regulation. few requirements VS Europe Data Protection Directive o The right to have inaccurate data rectified o The right of recourse in the event of unlawful processing o The right to withhold permission to use data in certain situations o The right to know where data originated Website terms and conditions: standard terms have to be included in the contract and brought to the attention of the customer → click-wrap agreements are more easily enforceable Deep linking: not legal in all countries (e. but how effective is this? Stick to the “Rome Treaty” that states that the country where the purchased GOOD (hotel room) is. Germany).g. pb if deep link to an illegal site. buyer of the car.g.13 - . excursions. machinery… in order to work with the most updated equipment and avoid replacement costs (never want to own product) Consumer leasing: cars for private usage (sometimes intention to buy) Consumption leasing: anything else for private usage (sometimes intention to buy) Leaseback: refers to property e. garage which takes care of the lease.g. . Delivery and other processes (Payment) of the sold Good should be regulated under this term Advertising. Give property to a bank to receive more cash monthly Lease payments back to bank Car leasing Garage sells to buyer Buyer leases to customer Buyer gives warranty to Lessee (customer) Disadvantages of Leasing The lessee assumes risk/not owner High insurance fees (always highest value) Agreed number of Km Initial Deposit necessary in most cases At the end of agreement taker not automatically owner E-Commerce 40 a-e 7 days revocation period as soon as the sellers name and address is known E-contracts as door-to-door sales (home.g. at residual value (whereas not for rent) 3 parties involved: buyer. is the place of Jurisdiction Forum selection clause. hyperlinks to copyright material is illegal in some countries Hyperlink: illegal to link with copyrighted material without permission (e.• • • • • Payments = value of the object at the beginning – end value + administrative costs Contract cannot be terminated before the term specified in the agreement Option to buy at the end of the contract.

obligations of the 2 parties • • Lessor must give possession in a suitable condition for use. consumer not liable for losses The EU and E-Commerce: Directives on misleading advertising • Directive on Data Protection • Directive on Certain Legal Aspects of E-Commerce in the Internal Market • Directive on Unfair Terms in Consumer Contracts Consumer rights to: • Cancel a purchase made involving FRAUD (made with alien CREDIT CARD…) • If card is lost: NO MORE THAN 150 Euro CHARGES • If Seller doesn’t ASK for E-IDENTIFICATION  Consumer is NOT Liable for LOSSES Commercial Rental Agreements Hotel property management • Commercial lease • Management contracts • Franchise contracts • Own and operate hotel property Leases: transfer of use.EU and E-commerce Body of law to ensure consumer protection: legislation of general nature. also applies to E-commerce Misleading advertising Data protection o Enforcement of Notice. Choice. depending on the country • Free form of contract Leases: Step 1. without defects Lessee must pay rent. the adress o Electronic mail address o Trade register and registration no o VAT no o Different stages to follow to conclude contract o The expedients for correcting and handling errors o If concluded contract will be filed and accessible Unfair terms in consumer contracts • Unfair terms used in a contract are not binding on the consumer • Must always be written in intelligible language • Balance in parties’ rights and obligations • Consumer favored in cases of doubt Payments • In case of fraudulent use: consumer should be allowed to request cancellation and to be recredited with the sums paid • After notification no longer liable for any losses.14 - . Access and Security Measures o Stick to European Union Data-Protection Directive o Inaccurate Data has to be RECTIFIED o RECOURSE in Case of UNLAWFUL Processing o Right to NOT give Permission to USE personal DATA o Right to make Data Origin TRANSPARENT Specific requirements about E-contracts include: o The name of service provider. except if fraudulent • No physical presention or electonic identification. guarantee + duty for care and consideration . not ownership • Rental contract between landlord/tenant or lessor/lessee • Subject to specific regulatory bodies.

109 Termination of the contract 259 a b Lesson or suppress rent 259 d Deposit of the rent 259 g Lodge rent 259 g-I Damages and interest 259 e Extension 272 273 1.g. violation of due care.15 - . damages and interest. in default refer to custom law o Time limit for anticipated termination. change of owner. for serious ones and if no repair done.• Initial rent: how much and how long in advance? Leases: Step 2. right for subletting should be specified in the original contract Lessee can “lodge” the rent = withholding of the rent for specific reasons (e. landlord can request that premises furnished adequately / then can retain chattel as a guarantee if rent not paid. offer of replacement lessee Duration/rental relationship can be definite or indefinite (time) 255 Non performance or imperfect performance of the contract at the time of the transfer of the object 258 Suitable conditions for use 256 Lessee needs to pay rent 257 Deposit laws 257 (e) Care and consideration (careful usage of the accommodation) 257 (f) repairs107. repair of serious defects). bankruptcy o By the lessee: late delivery. tenant may ask for legal performance. time limit and wish to lodge the rent Lessee may have right of retention: applies to commercial property only → at the beginning. serious defect. death of lessee. tenant can get out of the contract or ask for immediate repairs or for damages and interests → all depends on the degree of gravity of the defect o Subsequent: minor are tenant’s problem. lessen or suppress rent. end of the lease agreement Extension of lease Termination of lease: o Due date: specified in contract. terminate the contract Procedure when asking for repair: lessee must give written notice with details of defects. may be original or subsequent o Original: if serious. not sell them though Lessee can sublet under certain conditions: obligation for lessee to get permission from the lessor. specified in contract Premature termination of lease o By the lessor: late payment. request sent to official authority Leases: Step 3.At the beginning Lessor must: • give possession art 258 • in a suitable condition For use art 256 • without defects Lessee must: • pay rent 257 CO • guarantees 257 (e) • duty of care and consideration 257 (f) Comminatory period: 30 days after first denial of payment then landlord can take legal action meaning giving another 30days and then can kick him out (evict him) . problems that can occur • • • • • Defects in object: different degrees.

107-109 CO .certain conditions There are Minor defects.lodging of rent art 259 g-i .medium /minor. Medium defects.tenant must: .During the Lease Defects in object -the lessee may have to «lodge» rent -lessee has right of retention in Commercial leases in certain case -if lessee wishes to sublet.reduction of rent . Serious defects Defects may be original or subsequent (occurred during) Original defects 10 days landlord is responsible for all defects – Minor.damages and interest Subsequent defects minor defects are tenants problem Serious defects the tenant may after suitable time limit for repair: • Terminate the contract 259 (b) (a) • Ask for legal performance • Lessen or suppress rent 259 (d) • Lodge rent 259 (g)-(i) • Damages and interest 259 (e) Medium defects • End of suitable time limit lessee may • -fix the defect at lessors expense 259(b)(b) • Lessen or suppress rent 259 (d) • Lodge rent 259 g-i • Damages and interest Pressure on lessor to do something/repair Lessee must: • give written notice to landlord with • details of defect • giving a reasonable time limit to repair • stating wish to lodge rent in default Lessee must send request for repairs of defect to the Conciliation Authority In a maximum of 30 days from when rent is due and withheld In default of demand to CA in the time limit the withheld rent can be paid to lessor Applies to commercial property only Applies to furniture and fittings on premises of commercial lessee and sub lessee Cannot be automatically used by lessor .give time limit for repairs.insist it be repaired .16 - .have it repaired at landlords expense .259 a-i In default of repairs the tenant may: .30 days to dispute the initial rent from state of premises examination To the competent authority Because of: -professional or family necessity -Letting agreement when short supply -rent increase of 10% 2. medium. serious If serious – tenant can get out of contract Or ask for immediate repairs to be done.

often end of a month In default cantonal/local custom.17 - . July and October In default legal -266(c)(d) Time limit for termination: In general contractual Legal minium residential. When rent unpaid then_ request legal office for proceedings to take inventory of chattels to guarantee rent due for previous year rent for current 6 months if lease continues The chattels cannot be sold.Commercial. significent changes in use At the end of the lease agreement extension of lease agreement termination of letting agreementpremature termination ordinary notice Who can apply for extension? In the 2 durations of letting agreement? To whom? 5 impossible cases.273(2)(a) 273(2)(b)-30 days or 60 days Number of extensions Effects of extensions Termination of lease 266 CO Due date Time limit for termination/date of revocation Contractual.2 weeks Premature Termination of the Lease By the Lessor: • • • • • Late payment 257 (d) Violation of due care 257 (f) Change of owner 261 Good cause 266(g) Bankruptcy 266(h) By the Lessee . given away 3. Take proceedings for execution of rent Subletting 262 Obligation for lessee to get permission to sublet Tenant is allowed to sublet Clause in contract otherwise null Lessees obligations get permission to sublet Lessors can only refuse if: lessee refuses to divulge terms when asked conditions of subletting improper-too much benefit to lessee nuisance (Ärgerniss) to landlord.6 months .landlord can insist only that premises be furnished adequately 2.in VD.Right of retention 1. At the beginning.Park and room. 1st April.272 (a) Time allowed.3 months .

especially if confirmed).18 - . criminal law) • Frustration: when circumstances outside the control of one of the two parties prevent it from being performed (force majeure) • If a hotel overbooks (and breaches reservation contract.• • • • • Late delivery 259 (b) Serious defect in object during lease 259(b) Death of lessee 266 (i) Good cause 266 (g) Offer of replacement lessee 264 (1) Accommodation Contracts Contracts hotels enter into: • Purchasing contracts • Service contracts • Accommodation contracts • Sale for cash 184 • Deposit contract 272 • Letting contract 253 Yield management: • • • Maximize the enterprise’s effective use of its resources Maximize business bottom line profit through managing: o Pricing o Sales volumes o Operating margins o Gross profit contributions YM decisions o Rack rate and discounted pricing o Timing of offers o Timing of acceptance of bookings o Overbooking statistics and practices o Which customers to book out (walk/bump) Is it legal? • Breach of contract: reservation either confirmed or held constitutes a valid oral binding contract → promise from the hotel to deliver a room in the future in exchange of payment. customer can file lawsuit Fair practices: • Forecasting contract capacity • Establishing an effective reservation policy o Confirmed reservation: held until mutually agreed time. promise of the client to pay for it • Misrepresentation: the hotel willingly misrepresented facts to the client → intention to defraud o Some US courts recognize YM as a standard practice and don’t charge for misrepresentation • Unfair and deceptive acts and practices: intended to prevent customer deception (public law. no prepayment o Guaranteed confirmed reservation: customer will pay if no-show .

misrepresentation: misleading statements. fraud. French and Americans can impose cancellation penalties with time periods applying Reducing no-shows: • Facility that honors bookings • Document all reservations in writing • Establish policies related to making guaranteed reservations and billing of no-shows in writing. easily communicated cancellation policies • Penalty in case of no-shows Truth in material: advertisement.19 - . promotional contracts → tort.• French law o Confirmation must be written o Arrhes: non-refundable deposit / if hotel cancels. may not operate on their own behalf without disclosure and approval of their principals Advantages of management contracts for operator: • Growth of hotel chain / low investment (no real estate) • Owner bears the financial risk (even though trend towards more investment from the operator) Disadvantages for operator: • No control on transfer of ownership • Shortfall of owner cash flow = bankrupcy Types of management contracts: Category 1 o o o o o Category 2: o o o Day-to-day management Pre-opening planning Recruitment and training of staff High level of name recognition Cost = 3-4% of total revenue + incentive fee No name recognition Franchise affiliation for owner Cost = 3-4% of total revenue + 5% of room revenue to pay franchise fee . double refund to customer o Dépôt: refundable to customer in case of cancellation o English. or to represent another person referred as the Principal Agency law → fiduciary responsibilities over the agent: • Place their principal’s interest over their own • Preclude them from competing with their principal • Preclude self-dealing (i. brochure. may lead to actions for damaging and criminal proceedings (penal law) Management Contracts The 2 parties involved are: The operator o o o o o The owner Agent for owner Has full responsibility for operating and managing the property The employees are owner’s employees The losses and lawsuits absorbed by owner The operator receives fees The Agency = an Agent is a person authorized to act for. • Reconfirm reservations in certain cases • Develop clear. breach of contract.e.

g. staff training…) Technical assistance (e. site inspection.20 - .5%) o % of total sales Advertising fees Training fees Issues: • Encroachment: expansion strategy of the brand • Purchasing requirements • Changes in operating manuals • Renewal clauses • Protection of the brand → tight control • Tax treatment of fees vary from country to country EU and the Hospitality Industry Laws and Regulations Regulations in Place regarding o o o o Environment Enterprise and Information Society Employment and Social Affairs Health and Consumer Affairs Laws in Place regarding o o o Data Protection Directive E-Commerce Directive Time-Share Directive . sales network…) Advantages Least investment to penetrate a market and access a central reservation system Customer recognition and brand loyalty Disadvantages Power of international firms on independent franchisees Standardized approach Loss of autonomy / close supervision and control Different types of fees • Initial fee: market study. joint advertising. reservation system. study of potential sites. SOP’s. technical assistance for pre-opening Monthly fees: o Fixed monthly fee + amount per reservation made through the CRS o % of room sales (3 to 6.g.g. purchasers’ network…) Marketing (e.Franchise Agreements Franchise = agreement between the holder of a brand name (franchisor) and a franchisee Services offered by franchisor: • • • Operating procedures (e. financial assistance. name.

o o o Distant-Contract Directive Package Holiday Directive Fire-Safety in Hotels Directive Overall Benefits of the EU o FREE Movements of Goods. Persons. Capital and Services FOR MORE INFO REGARDING THE EU and its CONSTITUTION see the SLIDES Civil Liability Definitions Civil Liability o The Obligation imposed on a person to remedy tort or wrong causes to another person in a violation of his LEGAL or CONTRACTUAL obligations o o Something “WRONG” against an individual Intentional (assault) or NON-Intentional (recklessness) Tort Duties and Obligations of a Hotel Manager Duties of CARE o o o o o o To provide SAFE Premises Serve ALCOHOLIC DRINKS in a responsible manner Hire QUALIFIED Staff TRAIN STAFF properly WARN of UNSAFE Conditions SAFEGUARD Guests Property Different Types of Liability Fault Based Liability o Unlawful Act   An Act is unlawful when it violates a rule of conduct designed to protect private individuals directly or indirectly An Unlawful Act occurs every time a person violates the absolute rights of another such as the RIGHTS of PERSONALITY or PROPERTY Rights The injured Party has to prove    Article 41 The Unlawful Act The Injury The Cause and the Effect .21 - .

22 - . intentional. Reckless or Negligent… VIOLATION may RESULT in DAMAGE-PAYMENTS Contractual Liability o o Liability for Agreements within Contracts that were made Have to follow the AGRGEED patterns Statutory Liability in Switzerland Head of Family Article 333 Keeper of Animal Article 56 The EMPLOYER Article 55 Employer is Responsible for DAMAGE Caused to a THIRD PARTY by his employees Also responsible for Damage to a Client Article 101  The OWNER of BUILDINGS and STRUCTURES Article 58   Inadequate Maintenance Fault in Construction What has a Injured Party to Prove? Fault based Unlawful act Injury Case + effect Statutory Generating fact Injury Case + effect Liability is presumed Contractual Breach of contract Case + effect Fault of co-contracting party presumed Fault-reckless. Was it Intentional. negligent Liability of Hoteliers Hoteliers are responsible for THEFT Article 487 DESTRUCTION Article 487 DETERIORATION Article 487 Liability for Valuables If NOT Deposited with In-Keeper ONLY liable if Fault Article 488-1 Is with the hotels Personnel If DEPOSIT was REJECTED by Hotel  Total Liability Article 488-2 EXCEPT: Valuable that cannot safely DEPOSITED (Van Gogh…) Personally kept Valuables are Treated as other EFFECTS (1000 CHF Limit Article 488-3 Liability end when HOTEL was not informed Immediately of LOSS Article 489 • Restaurateurs are NOT Responsible for Personal Belongings EXCEPT They restaurant OWNER takes the EFFECTS and GIVES a RECEIPT Article 472 .

Parking in Switzerland and Corresponding Liability Parking of vehicle Underground closed common garage Supervised exterior hotel parking lot Non supervised hotel parking lot Parking lot for payment Type of liability Hotel deposit-ordinary personal effects – 487 Ditto – 487 None could have deposit contract 472 Letting agreement – no absolute liability .23 - .