Facts
The dispute opposes A.Y. and B.Y. (the claimants) to X. (the defendant). The claimants concluded with the defendant a publicly authenticated sales contract for a residential and commercial property with a restaurant, tenant's accommodation, guest rooms, a bakery, and parking spaces. The purchase price was set at 890,000 francs. A penalty of 100,000 francs was agreed upon for the granting of the purchase option, which the claimants undertook to pay jointly and severally. This amount was to be deducted from the purchase price in the event of the exercise of the purchase option, otherwise it was to remain acquired by the defendant. The purchase option was granted to the claimants for a period of 10 years. The parties also concluded on the same day a fixed-term lease for the property, with the rent set at 5,208 francs per month. Shortly after the start of the lease, the claimants were late in paying the rents, which led the defendant to terminate the lease. The claimants then brought an action before the court, requesting the annulment of the sales contract and the lease contract, as well as the reimbursement of the 100,000 francs penalty. The court of first instance dismissed the claim and upheld the defendant's counterclaim. On appeal, the cantonal court reduced the amount of the 100,000 francs penalty by two-thirds, bringing it down to 33,000 francs.Considerations
The Federal Court considers that the 100,000 francs paid by the claimants constitutes a contractual penalty, and not a mere deposit. Although the payment was made before the breach of contract, the judge can nevertheless reduce the amount of…