Reduction of Excessive Rent in a Lease Contract

Facts

Tonwerke Thayngen AG is the owner of a 12,015 m2 plot of land that it leased to the Lohn football club in 1974 for an annual rent of 300 francs. In 1990, the owner terminated the contract effective 31 December 1992. In subsequent negotiations, the parties concluded a new contract in 1992 providing for an annual rent of 3,000 francs for the first 5 years. The football club then brought an action before the cantonal court to have the rent reduced to 800 francs per year, based on Art. 21 CO (lesion). The cantonal court granted the request and reduced the rent. The owner appealed this decision.

Considerations

The Federal Tribunal partially upholds the appeal and remands the case to the cantonal court for a new decision. It considers that the judge may, in the event of an established lesion within the meaning of Art. 21 CO, partially reduce the contract rather than declare it totally null and void. This possibility of partial reduction stems from the purpose of the norm, which is to protect the injured party, and is in line with the general trend in contract law to allow judicial correction of the content of contracts rather than their outright cancellation.

However, the Federal Tribunal considers that the cantonal court has misjudged the objective value of the lessor's performance, basing itself on the agricultural yield of the…