Federal Tribunal Requires Clarity in
Bank Contracts and Substantiated Defence
in Banking Litigation

In a recent decision, the Swiss Federal Supreme Court set a high bar for banks when proving contract changes, applying standard clauses and defending against client claims in litigation.

Key takeaways from this case include:

• Intent of the parties supersedes the content of the written contract.
• Contract clarity is essential and banks must prove any contract change with clear evidence of mutual intent and explicit terms.
• Standard ratification clauses must adapt to circumstances and strict deadlines may not apply especially if document transmission is delayed or is too voluminous, or if client objections persist.
• High procedural burden on litigants — banks must contest client claims with detailed, evidence-based responses.