Tenant's Right to Rent Reduction for Substantial Defect in Leased Property

The case concerned a dispute where a tenant claimed a reduction in rent, arguing that a serious and continuous defect in the leased property rendered it unfit for its intended use, thereby frustrating the contract's purpose. The court of appeal had rejected the tenant's claim, finding that the defect, while existing, did not entirely deprive the tenant of the use of the premises. The highest court overturned this decision, reasoning that when a defect substantially impairs the enjoyment of the property for the purpose for which it was leased, the tenant is entitled to a corresponding reduction in rent, even if some use remains possible, because the tenant did not receive the full benefit of the bargain stipulated in the lease agreement.