Konventionalstrafe · contractual penalty
The contractual penalty is the Swiss counterpart to what common-law contracts call liquidated damages. It is agreed in advance, and the court must reduce a penalty that it considers excessive. The Federal Administration's translation says contractual penalty: liquidated damages and penalty clause are common-law concepts.
Request a demoThe term in four languages
- German
- Konventionalstrafe
- French
- clause pénale
- Italian
- pena convenzionale
- English
- contractual penalty
Definition
A contractual penalty is a performance, usually a sum of money, that is fixed in advance and becomes due if the contract is not performed or is performed defectively. Unless otherwise agreed, the creditor may compel performance or claim the penalty, but not both. The penalty is payable even if the creditor has not suffered any damage, which distinguishes it from damages. The court must reduce any penalty that it considers excessive.
Swiss federal acts are published in German, French and Italian, and all three versions are equally authoritative. The English term shown here comes from the Federal Administration's English translation, published on Fedlex for information only. Where there is no translation, it follows common usage.
Full glossaryThe term in an official text
powered by Neur.onWenn für den Fall der Nichterfüllung oder der nicht richtigen Erfüllung eines Vertrages eine Konventionalstrafe versprochen ist, so ist der Gläubiger mangels anderer Abrede nur berechtigt, entweder die Erfüllung oder die Strafe zu fordern.
Where a penalty is promised for non-performance or defective performance of a contract, unless otherwise agreed, the creditor may only compel performance or claim the penalty.
Source: Fedlex, Code of Obligations. In Corrext, this segment and the ones around it appear in Fast lookup CHnell, each with its reference.
Related terms
The interest owed by a debtor who is in default on payment of a pecuniary debt.
Schadenersatz · damagesCompensation for damage caused by non-performance or by an unlawful act.
Bürgschaft · contract of suretyAn undertaking towards a creditor to vouch for another person's debt.