Warranty for Defects in Swiss Sales Law

Definition of Defect (art. 197 CO)

The seller warrants the buyer against qualities promised and against defects that materially or legally remove or significantly diminish the thing's value or fitness for its intended use. Defects existing at the time of risk transfer are covered, even if appearing later. Promised qualities are also warranted (art. 197 para. 2 CO).

Inspection and Notification (art. 201 CO)

The buyer must inspect the thing upon receipt as customary (art. 201 para. 1 CO). Defects must be notified immediately (art. 201 para. 1 CO). Hidden defects: notification upon discovery (art. 201 para. 3 CO). Failure: the buyer is deemed to have accepted the thing (art. 201 para. 2 CO), losing all warranty rights.

Buyer's Rights (art. 205-208 CO)

Rescission (redhibition): return the thing and recover the price (art. 205 para. 1 CO). Price reduction (actio quanti minoris): keep the thing with price reduction (art. 205 para. 1 CO). The court may limit relief to price reduction if rescission is unjustified (art. 205 para. 2 CO). Damages: art. 208 para. 2 CO provides for damages unless the seller proves no fault.

Exclusion Clauses (art. 199 CO)

Valid, but void if the seller fraudulently concealed defects. "As-is" or "no warranty" clauses are common in real estate and used vehicle sales but do not protect a dishonest seller.

Prescription (art. 210 CO)

Two years from delivery for movables (art. 210 para. 1 CO). Five years for immovables (art. 219 para. 3 CO). One year for used goods, unless otherwise agreed. If the seller gave a specific warranty period, prescription does not run while the warranty applies.