Guillotine clause

Under a guillotine clause, which has its name from the guillotine, refers to a clause that makes the adoption of a contract package depends on that all contracts are accepted. If only one of the contracts not accepted by a party or canceled later, all contracts shall be deemed not accepted or terminated.

The guillotine clause is used when you want to prevent one party only " the raisins from the cake picks ," meaning that they only received for them mainly advantageous contracts or maintains while it is essential for the other party is that the package comes as a complete package in force.

Examples of the guillotine clause found in the bilateral relationship between the European Union to Switzerland. One reason for the application of this clause is not least the fact that the more cumbersome compared to Switzerland decision-making processes of the European Union, this would hamper their part to respond to the termination of the other contracts that Switzerland should terminate one or more contracts.