Vouchers with limited validity

• Contracts
• Private Clients

Who doesn’t know the problem: a loved one’s birthday or Christmas is coming up and, like every year, one is tormented by the question “What could I give as a present?”. Conveniently, a large number of department stores and service providers now offer vouchers so that the person receiving the gift can fulfil their wish themselves straight away.

Vouchers that are forgotten

However, it is not uncommon for new troubles to arise soon. It is easy for such a voucher to be forgotten and not redeemed within the period stated on it. Then you can only hope for the goodwill of the department stores’ or service provider concerned – right?

Limitation periods also for vouchers?

From a legal point of view, there are various arguments against the admissibility of limiting the validity period below 5 years. Basically, it can be argued that such vouchers are bearer instruments that securitise an ordinary claim. However, according to the law (depending on the type of claim), claims are subject to an irrevocable limitation period of five or ten years by agreement of the parties.

Vulnerability of the shortening of the period of validity

Some jurists nevertheless consider a shortening of the limitation periods to be permissible. Even if this were the case, however, the shortening of the period of validity can be challenged. Since the period of validity of the voucher is hardly ever negotiated individually with the buyer, these are general terms and conditions (GTC). If these impose rules that depart too far from the existing legal order (such as a validity period of two years instead of five or even ten years as provided for by law), they can be considered null and void and thus legally ineffective.

The legal situation regarding the question of the admissibility of such restrictions on the period of validity of vouchers has never been judged in Switzerland and is therefore open.