Facts
The Republic and Canton of Jura had concluded two construction contracts with companies X. SA and Y. SA for the execution of works, including the supply and installation of cable ducts. A dispute subsequently arose between the parties regarding the quality of the galvanization and the thickness of the cable ducts. On 31 October 1995, the principal notified the consortium that it was terminating the contracts, as the consortium persisted in not providing the quality and type of cable ducts awarded. The parties were unable to find a solution. On 11 March 1996, the Canton of Jura formally notified the termination of the contracts in accordance with Art. 366(2) CO, as it was evident that the consortium intended to continue performing the contract in a defective manner and contrary to the concluded agreements. The claimant companies then sued the Canton of Jura before the Federal Tribunal, claiming payment of compensation.Considerations
The Federal Tribunal considered that the conditions for the application of Art. 366(2) CO were met in this case. The principal could therefore validly waive the promised services of the companies and claim damages for non-performance, in accordance with Art.…