The plaintiff and the defendant concluded a consumer mortgage agreement, under which the plaintiff was granted the credit in the amount of EUR 202 734 for the purchase of an apartment. The consumer mortgage agreement established that the delay in payment of even a minor instalment was considered to be a material breach of the agreement, entitling the defendant to unilaterally terminate the agreement and claim the return of the received credit, as well as interests and other payments under the agreement.
After six years following the conclusion of the consumer mortgage agreement and proper execution thereof, the plaintiff faced financial difficulties and became indebted to the defendant in the amount of EUR 6000. The defendant therefore requested the plaintiff to immediately make a payment of EUR 6000. The plaintiff requested to extend the term for paying the overdue instalments. The defendant covered almost all the debt within the extended term; however some minor non-returned amount was left unpaid. Thus, the defendant terminated the consumer mortgage agreement based on the argument that the consumer mortgage agreement provided that the delay of payment of even a minor instalment is a material breach on the part of the consumer.
The plaintiff sued the defendant for illegally terminating the consumer mortgage agreement.