Facts

On June 15, 1964, the spouses Jacqueline and Jonny-Robert Leemann concluded two lease agreements: one with the Société anonyme Motel de Gruyères for the Motel de Gruyères in Epagny and the associated equipment, and another with the Société immobilière Les Prahys "A" SA for office, washing, drying and ironing rooms, a kiosk and a breakfast room. The first contract began on the date of conclusion and ended on December 31, 1974, the second was to begin on December 31, 1964 and also end on December 31, 1974. However, the promised additional rooms were not constructed.

The tenants then did not pay the agreed rent for the motel and terminated the contracts without notice on September 1, 1965. The landlord Motel de Gruyères SA then sued for rent payments and damages.

Considerations

The Federal Court decided that the rules on the lease agreement (Art. 102 et seq. CO) and not the rules on the lease agreement (Art. 254 and 255 CO) are to be applied. The landlord was in default, as it did not construct the promised additional rooms in a timely manner, although this was contractually agreed. A reminder was not necessary in this case, as the landlord's behavior clearly showed that it would not fulfill its obligation.

The Federal Court confirmed the decision of the lower court, according to which the tenants were entitled to terminate…