Rent Reduction: No Forfeiture of the Further Reduction Claim by Tacit Acceptance of a Partial Rent Reduction

Facts

A. and B. are the landlords of a 3 1/2-room apartment in Zurich, which has been rented by C. and D. since October 15, 1992. Due to lower mortgage interest rates, A. and B. reduced the rent to CHF 1,777.-- as of April 1, 1994 and to CHF 1,740.-- as of April 1, 1996. C. and D. did not object to these rent reductions, but later demanded an additional reduction to CHF 1,725.--. The Rent Tribunal reduced the rent to CHF 1,725.-- as of April 1, 1996, but rejected a further reduction, as the unchallenged rent reduction as of April 1, 1994 was considered a consensual contract amendment. On appeal by the tenants, the High Court reduced the rent to CHF 1,596.25. The landlords then appealed to the Federal Supreme Court.

Considerations

The Federal Supreme Court dismisses the landlords' appeal. It states that the tacit acceptance of the rent reduction by the tenants is not to be understood as a waiver of the further statutory reduction claim. The acceptance of a beneficial partial performance does not mean that the tenant waives the remaining claim. Moreover, tenants would usually not be able to challenge the rent reduction as insufficient, as the notification as such is not contestable and the tenant can only demand…