Whether the contractor could claim the first instalment of CHF 12,180 despite subsequent impossibility of performance.
No. The recourse of the owners was upheld on this point and the contractor's claim for CHF 12,180 was rejected.
The contractor had contributed by fault to the impossibility by failing to warn the owners in time of the building-permit risk; the owners had clearly exercised the right to rescind the contract retroactively, so no counter-performance was owed for work that had become useless.