Real estate

Commercial lease

Settle commercial premises lease disputes by arbitration, without conciliation proceedings: rent, ancillary costs, return of the premises, defects, sureties, and, within the limits of mandatory law, notice and extension.

Good to know. CAUTION, MANDATORY LIMIT. This clause applies only to leases of commercial premises. For residential leases, private arbitration is excluded by law: art. 361 para. 4 CPC reserves the competence of the conciliation authority. Never propose this clause for a dwelling.

What you can submit

Payment of the rent, ancillary costs and their statement.
Return of the premises, exit inventory, defects and rent reduction, sureties and guarantees.
Within the limits of mandatory law: challenge to the rent, validity of the notice, extension of the lease.

What remains reserved

Commercial leases only: a mixed lease predominantly for residential use follows the regime of the residential lease, and arbitration is therefore excluded.
Mandatory law: the protective matters (abusive rent, protection against notice, extension) are arbitrable, but the arbitrator must correctly apply the mandatory law.
Proceedings falling under debt enforcement and bankruptcy and instruments reserved to the state authorities.
Consumers: a dispute with a consumer tenant is arbitrable, but where the consumer is the respondent it is arbitrated only if the consumer accepts arbitration once the dispute has arisen (Rules art. 10 paras. 3 to 6). In a contract concluded with a consumer, use the clause for consumer contracts.

The clause

Ready to insert into your contracts. Copy it, or generate a personalised version.

Translation for information; for a Swiss-law contract the French version is recommended.

Clause to be inserted in the lease of commercial premises

Article [X] - Arbitration 1. Any dispute, difference or claim arising out of or in connection with this lease, in particular as to its conclusion, validity, interpretation, performance, amendment or termination, shall be finally settled by arbitration administered by CONCORDA (www.concorda.ch), to the exclusion of the ordinary state courts and of the conciliation procedure. 2. The following are covered in particular: the payment of rent, ancillary charges and their statement of account, the return of the premises and the exit inspection report, defects in the leased object and claims for reduction of rent or for damages, security deposits and rent guarantees, as well as, within the limits of the applicable mandatory law, the challenge of the rent, the validity of the notice of termination and the extension of the lease. 3. The arbitration is conducted in accordance with the CONCORDA Arbitration Rules in force at the time proceedings are commenced, which form an integral part of this clause. The parties expressly exclude the application of Chapter 12 of the Federal Act on Private International Law (PILA), in accordance with article 176 paragraph 2 thereof, and submit the proceedings exclusively to Swiss domestic arbitration (art. 353 et seq. CPC). The arbitral tribunal is composed of a sole arbitrator. The seat of the arbitration is at Monthey. The language of the proceedings is French. The award is final and constitutes an enforceable title (art. 387 CPC), the remedies before the Federal Supreme Court remaining reserved (art. 389 et seq. CPC). 4. The arbitral tribunal applies the mandatory provisions of tenancy law. There remain reserved the matters which cannot be the subject of arbitration, in particular proceedings under the Debt Enforcement and Bankruptcy Act and acts reserved to the state authorities.

See the other variants (1)

Short clause (standard commercial lease)

Any dispute arising out of or in connection with this lease of commercial premises shall be finally settled by arbitration, in accordance with the CONCORDA Arbitration Rules, by a sole arbitrator, seat at Monthey, French language, to the exclusion of the state courts and of the conciliation procedure. The arbitral tribunal applies the mandatory tenancy law. Chapter 12 of the PILA is excluded (art. 176 para. 2 PILA).

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Related fields

Rights in rem

Rights in rem disputes are arbitrable between the parties in their financial dimension: easements, neighbour relations, ordinary co-ownership, real estate charges. Land register operations and authentic form remain reserved to the authorities.

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Construction

Construction is a historic field for arbitration. No special rule restricts it: contract for work, architect's or engineer's mandate, sale of materials or of real estate, everything is arbitrable between the parties.

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Trade and distribution

Commercial disputes between businesses are of a financial nature and freely disposable, and are therefore fully arbitrable. Even mandatory claims, such as the agent's goodwill indemnity (art. 418u CO), are arbitrable: the Federal Supreme Court has confirmed this.

See the area