If you or your contractual partner fail to fulfil one of your contractual obligations, this constitutes a breach of contract. This is referred to as a breach of performance. In this case, the party honouring the contract can take legal action against the party in breach. As such, it may be able to persuade the defaulting party to fulfil its contractual obligations or demand compensation and/or the termination of the contract instead. 

Austrian law distinguishes between four types of default:

  • A contracting party fails to fulfil the contract at the agreed time, at the agreed place, or in the agreed manner: default.

  • It has become impossible for a contracting party to fulfil the contractually agreed service: subsequent impossibility.

  • The goods or services provided are defective: warranty.

  • Other contractual duties of protection and care have been breached that impair the provision of services: positive breach of contract.

Below you will find information on the most important service disruptions and find out what the legal consequences might be.

Subsequent impossibility

Default

Guarantee