Civil law governs the legal relationships between private individuals. Contract law is part of civil law. By concluding contracts, you organise your daily life and your professional activity (e.g. by concluding sales contracts, service contracts, contracts for work, etc.).

In Austria, the principle of freedom of contract applies. This means that contracts can be freely negotiated between the contracting parties. However, there are individual mandatory legal regulations that prohibit certain content (e.g. due to illegality or immorality, labour law regulations, or mandatory provisions in copyright law).

Example: In most industries, collective agreements apply. These stipulate certain minimum standards for the employment of workers. If you work in this industry or have employees yourself, the employment contracts must fulfil these minimum standards (e.g. minimum wage, remuneration, and maximum working hours). See the chapter on labour law. 

Example: According to Austrian copyright law, contracts stipulating the transfer of your entire copyright on a work of art to another person are invalid. Only you can be the author. You can, however, authorise other parties to commercially exploit your work of art. See the chapter on copyright.

A contract can also be made up of elements from various legally regulated contracts. These are referred to as mixed contracts. In this case, the appropriate contract law applies to each part of the contract as normal. Accordingly, a mixed contract can be subject to several types of contract law. 

In the unlikely event that a contract is so far removed from the law that a completely new type of legal relationship arises, only the general provisions on contracts are applicable. This is an atypical contract. 

Most contracts are concluded without any formal requirements. This means that contracts can be concluded in writing, verbally, or implied (conclusive, tacit). However, we always recommend the written form for reasons of proof. Please make sure that you always have everything documented and that you are in possession of the contracts that you conclude.

Example: When you place a product on a conveyor belt in the supermarket, you are signalling that you want to buy the product; you do not have to verbally express your intention to buy it to the cashier. The employee charges you for the product, you pay, and you receive a payment receipt. Although you and the employee have not communicated verbally or in writing about the purchase, it is clear to everyone involved that a purchase has been made. In the case of purchases in shops, sales contracts are therefore concluded implicitly (conclusively, tacitly). As a rule, no written contract is drawn up here, only a payment receipt is issued. 

In certain cases, the contract must be concluded in a specific form (e.g. in writing in the presence of a notary) to protect the contracting parties.

Example: You set up a foundation to promote your art and transfer ownership of all your artwork to this foundation. The foundation declaration must be notarised.

How is a contract concluded?

What happens if problems arise during the fulfilment of the contract?