Key legal question
Whether damages for defective performance could be awarded under Art. 366(2) CO despite the owners' immediate termination of the contract.
Extracted holding
No; Art. 366(2) CO presupposes that the contract continues, so damages could not be based on that provision after an unequivocal termination.
Extracted reasoning
Immediate termination transformed the dispute into one governed, if at all, by Arts. 97(1) and 107(2) CO; the first-instance legal basis was therefore wrong.