Contract Hire Agreement for Switzerland

Contract Hire Agreement Template for Switzerland

A Contract Hire Agreement governed by Swiss law is a legally binding document that establishes the terms and conditions under which an asset or equipment is hired from a lessor by a lessee for a specified period. The agreement is structured in accordance with the Swiss Code of Obligations (Obligationenrecht) and related Swiss legislation, incorporating specific provisions for payment terms, maintenance responsibilities, insurance requirements, and return conditions. This document provides comprehensive coverage of all aspects of the hiring arrangement while ensuring compliance with Swiss consumer protection laws, financial regulations, and data protection requirements.

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What is a Contract Hire Agreement?

The Contract Hire Agreement is essential for businesses and individuals seeking to acquire the use of equipment or assets without the capital expenditure of purchase. This document, governed by Swiss law, outlines the complete hiring arrangement between a lessor and lessee, including detailed specifications of the hired item(s), payment schedules, maintenance requirements, and return conditions. It is particularly useful when regular payments over a fixed term are preferred to outright purchase, and when the hirer wants to avoid responsibilities of ownership while maintaining use of the asset. The agreement incorporates provisions compliant with Swiss legislation, including the Swiss Code of Obligations, Consumer Credit Act, and Financial Market Supervision Act, making it suitable for both business-to-business and business-to-consumer arrangements in Switzerland.

What sections should be included in a Contract Hire Agreement?

1. Parties: Identification of the parties entering into the agreement - the owner/lessor and the hirer/lessee

2. Background: Context of the agreement and brief description of the arrangement

3. Definitions: Definitions of key terms used throughout the agreement

4. Equipment/Asset Description: Detailed description of the item(s) being hired

5. Term and Commencement: Duration of the hire period and conditions for commencement

6. Payment Terms: Rental payment amounts, payment schedule, and payment methods

7. Delivery and Acceptance: Terms regarding delivery, inspection, and acceptance of the hired item(s)

8. Use and Possession: Conditions and restrictions on the use of the hired item(s)

9. Maintenance and Repairs: Basic responsibilities for maintaining the hired item(s)

10. Return Conditions: Requirements for the condition of the item(s) upon return

11. Early Termination: Circumstances and conditions under which the agreement can be terminated early

12. Default and Remedies: Events of default and available remedies

13. Liability and Indemnity: Allocation of risks and responsibilities between parties

14. Notices: How formal communications between parties should be made

15. Governing Law and Jurisdiction: Confirmation of Swiss law application and jurisdiction

What sections are optional to include in a Contract Hire Agreement?

1. Insurance Provisions: Detailed insurance requirements when insurance is not separately arranged by the hirer

2. Extended Maintenance Services: Additional maintenance services if provided by the owner

3. Upgrade Options: Terms for upgrading the hired item(s) during the hire period

4. Sub-hiring: Terms allowing or prohibiting sub-hiring to third parties

5. Purchase Option: Terms for purchasing the hired item(s) at the end of the hire period

6. International Use: Additional terms for when the hired item(s) will be used internationally

7. Data Protection: Specific data protection provisions when personal data processing is extensive

8. Force Majeure: Provisions for unforeseen circumstances preventing performance

What schedules should be included in a Contract Hire Agreement?

1. Schedule 1 - Asset Specification: Detailed technical specifications of the hired item(s)

2. Schedule 2 - Payment Schedule: Detailed breakdown of all payments including dates and amounts

3. Schedule 3 - Maintenance Schedule: Detailed maintenance requirements and schedules

4. Schedule 4 - Return Conditions Checklist: Detailed checklist for acceptable return condition

5. Schedule 5 - Insurance Requirements: Detailed insurance specifications and requirements

6. Schedule 6 - Service Level Agreement: Details of any included services and performance standards

7. Appendix A - Acceptance Certificate: Form for documenting acceptance of the hired item(s)

8. Appendix B - Return Certificate: Form for documenting return of the hired item(s)

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Switzerland

Publisher

Genie AI

Document Type

Employment Contract

Cost

Free to use
Relevant legal definitions
Relevant Industries

Financial Services

Manufacturing

Transportation and Logistics

Construction

Agriculture

Information Technology

Healthcare

Mining and Resources

Retail

Professional Services

Relevant Teams

Legal

Finance

Procurement

Operations

Risk Management

Asset Management

Treasury

Facilities Management

Commercial

Business Development

Relevant Roles

Chief Financial Officer

Finance Director

Fleet Manager

Procurement Manager

Operations Director

Equipment Manager

Legal Counsel

Contract Manager

Risk Manager

Asset Manager

Treasury Manager

Facilities Manager

Commercial Director

Business Development Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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