Federal Act
on Private International Law
(PILA)

¹ If power of rep­res­ent­a­tion is based on a con­tract, the re­la­tion­ship between the prin­cip­al and the agent is gov­erned by the law ap­plic­able to their con­tract.

² The con­di­tions un­der which acts of the agent bind the prin­cip­al and the third party are gov­erned by the law of the state of the agent’s es­tab­lish­ment or, in the ab­sence of such es­tab­lish­ment or if the lat­ter was not dis­cern­ible by the third party, by the law of the state in which the agent car­ries out their main activ­ity in the case at hand.

³ If the agent is bound to the prin­cip­al by an em­ploy­ment con­tract and does not have their own es­tab­lish­ment, their es­tab­lish­ment is deemed to be at the seat of the prin­cip­al.

⁴ The law re­ferred to in para­graph 2 also gov­erns the re­la­tion­ship between an un­au­thor­ised agent and the third party.