Contract Law

As a rule Austrian law does not prescribe any particular form – oral agreements are binding too. For certain transactions, however, the law does require a specific form, for example a notarial deed for the transfer of shares in a GmbH or for gifts without actual handover. Regardless of this, written form is almost always advisable: in a dispute what matters is what can be proven, not what was intended.

Under § 933 ABGB the warranty period is two years for movable goods and three years for immovable property, in each case from handover. In consumer transactions the Consumer Warranty Act has applied since 2022, with a one-year presumption period. Between businesses warranty can be restricted by agreement – we review such clauses before you sign.

Without a contractual basis only in exceptional cases – Austrian law does not recognise a general right to adaptation. That is why price adjustment clauses, termination and withdrawal rights, force majeure and adaptation clauses belong in every long-term contract. Existing contracts can be amended by mutual agreement; we conduct the negotiation and record the outcome in a legally secure way.

General terms and conditions only become part of a contract if they are expressly referred to and the other party has the opportunity to take note of them. Unusual and disadvantageous clauses are invalid under § 864a ABGB, grossly disadvantageous ones under § 879 Abs 3 ABGB. In consumer transactions the strict requirements of the Consumer Protection Act apply in addition. Regular review prevents key clauses from failing when it matters.

Depending on the case, performance, price reduction, repair, damages or withdrawal from the contract may be available. The correct sequence matters: usually a grace period must be set and the breach documented in a provable manner. We assess your claims, formulate the demand and enforce it – in court if necessary.

In principle no – contracts bind. The often-cited 14-day right of withdrawal applies only to consumers in distance and doorstep transactions, such as online purchases, not to purchases in a shop and not between businesses. Beyond that, only contractually agreed rescission rights or statutory exceptions such as default, mistake or laesio enormis help. If you want exit options, they must be negotiated into the contract – beforehand, not afterwards.

A contractual penalty can be validly agreed, but it is subject to the court's judicial power to reduce it: if it is excessive in relation to the actual detriment, the court may reduce it. It must also be settled whether it applies in addition to, or instead of, damages, and whether it presupposes fault. In employment contracts and towards consumers the limits are narrower than in dealings between businesses.