Facts
In this case, it was about a commercial purchase with a repurchase option that [R.] had concluded with [H.] and [D.] in order to grant a loan of 69,000 Swiss francs against a pocket watch collection. When [H.] and [D.] did not repurchase the watches within the deadline, [R.] sold the collection for 20,000 Swiss francs. [R.] then sued [D.] for payment of 50,000 Swiss francs. The Cantonal Court and the High Court of Appenzell Ausserrhoden dismissed the claim, and the Federal Supreme Court confirmed this decision.
Considerations
The Federal Supreme Court stated that the commercial purchase with a repurchase option for securing a loan is inadmissible and therefore null and void under Art. 914 of the Swiss Civil Code (ZGB). The legislator intended this provision to prevent the strict regulations on pledges from being circumvented. A conversion of the null and void legal transaction into a pledge is not possible, as this would lead to a significantly stricter obligation of the borrower…