Bail Money (Art. 158 OR)

Definition: A liability payment is a payment made by the debtor at the time of conclusion of the contract which the creditor should be allowed to retain in the event of non-performance. The detention money strengthens the contractual bond. Legal presumption: Liability money (and not a penalty fee) according to Art.158 para. 1 OR.

Adhesion money can be agreed in the form of a deposit or a bonus

Money on top: Money which is a grant in addition to the contractual performance of the donor. If the contract is duly fulfilled, the creditor thus retains the top-up money in addition to his contractual claim. Moreover, in the event of a default, the creditor is entitled to full compensation, irrespective of the top-up money already paid.

Deposit: Money which, in economic terms, is merely an advance on the contractual performance of the donor and must be credited accordingly. Accordingly, in the event of a possible default, the amount of damages owed is reduced by the value of the fishing rod already paid.

Legal presumption: bonus in accordance with Art. 158 para. 2 OR. The penalty payment cannot be claimed by way of legal action, as it must be paid on conclusion of the contract.

Shape: In principle, there are no special formal requirements for the justification of a prison sentence. However, if legal formal requirements are applicable to the main transaction (e.g. real estate purchase contracts require public notarisation in accordance with Art. 216 para. 1 OR to be valid), these also apply to the agreement of a liability money.

Distinction from the contractual penalty: Both prison money and the contractual penalty are instruments that ensure the provision of services. In contrast to the contractual penalty, however, the prison fee is not paid when the performance is disrupted, but already when the contract is concluded.