Facts

Spouses R. concluded a lease agreement with Gudrun D. for an inn in Germany. Agnes [B.], domiciled in Switzerland, signed a declaration of joint and several surety for this contract. After the termination of the lease, the lessors brought an action against Agnes [B.] for the payment of unpaid rent and damages. The district court and the cantonal court of Zurich dismissed the claim. The lessors filed an appeal for reform with the Federal Tribunal.

Considerations

Firstly, the question of the applicable law primarily depends on a choice of law by the parties. Failing that, the surety is subject to the law of the domicile of the surety. In this case, the Federal Tribunal confirmed that the cantonal judges were right to deny the existence of a choice of German law, so that the surety is governed by Swiss law.

Secondly, although the indication of the total amount of the guarantee in the deed of surety is a formal requirement under Art. 493 para. 1 CO, it is…