Key legal question
Whether the tenants were released under Art. 264 OR by proposing a suitable replacement tenant
Extracted holding
No. The proposed substitute was not suitable because he was not ready to take over the lease on the existing terms for reasons not attributable to the landlord.
Extracted reasoning
Art. 264 OR requires a replacement tenant who is both solvent and willing to assume the contract unchanged. The Federal Court held that the decisive point was the lack of willingness; challenges to the lower court's fact-finding were inadmissible.