Opinion of the Swiss Federal Court in the Matter of Weber, Huber, et Cie., Defendant-Appellant, Against “Rimba,” Plaintiff-Respondent

BGE 57 II 528 (1931)

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Opinion of the Swiss Federal Court in the Matter of Weber, Huber, et Cie., Defendant-Appellant, Against “Rimba,” Plaintiff-Respondent

Switzerland Federal Supreme Court
BGE 57 II 528 (1931)

Facts

Weber, Huber, et Cie (Weber) (defendant) contracted with M Corporation to purchase 200 tons of Polish mineral oil. M Corporation then agreed with J Corporation that J Corporation would take over all of M Corporation’s liabilities and assets. J Corporation then changed its name to Rimba Corporation (plaintiff). Rimba notified Weber of the change. Weber responded by advising that Weber did not consent to transfer its contract with M Corporation to Rimba and considered the contract terminated. Under Swiss law, the general rule was that a contract obligor may not be substituted with another obligor without the consent of the contract obligee. At the time of Weber’s response, the price of Polish mineral oil had dropped significantly, though Weber denied that the changed market circumstances were why it refused to accept the contract transfer to Rimba. Rimba sued Weber in the St. Gallen, Switzerland commercial court, seeking a declaratory judgment that the mineral-oil contract remained valid and that Weber was required to accept the 200 tons of mineral oil. The trial court entered judgment in favor of Rimba, and Weber appealed to the Switzerland Federal Supreme Court.

Rule of Law

Issue

Holding and Reasoning (Per curiam)

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