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Implicit Conclusion of a Tenancy Agreement in Austria
Implicit Conclusion of a Tenancy Agreement in Austria

A recent ruling by the Supreme Court (OGH) prompted inquiries into whether a contract, specifically a tenancy agreement in Austria, had been implicitly concluded.

Declaration of Intent in Contract Conclusion

The case centered on a commercial tenancy agreement's formation. Despite the lessor, a corporation, not yet authorizing the contract through an appointed representative, the tenant had already initiated renovation works on the premises; an employee of the lessor appeared to be aware but didn't intervene. Subsequently, the lessor terminated the tenancy, leaving the tenant, who had invested time and money, in limbo.

According to the Austrian Civil Code (ABGB), declarations of intent can be expressed verbally or impliedly. Implied actions, under the ABGB, leave no doubt about the specific intent, given all circumstances.

Conclusion of a Contract by the Right Person

The case centered on a commercial tenancy agreement's formation. Despite the lessor, a corporation, not yet authorizing the contract through an appointed representative, the tenant had already initiated renovation works on the premises; an employee of the lessor appeared to be aware but didn't intervene. Subsequently, the lessor terminated the tenancy, leaving the tenant, who had invested time and money, in limbo.

According to the Austrian Civil Code (ABGB), declarations of intent can be expressed verbally or impliedly. Implied actions, under the ABGB, leave no doubt about the specific intent, given all circumstances.

Practical Tip

Especially when dealing with a corporate entity (e.g., GmbH, AG), it's crucial to ascertain who is representing the entity. Before making anticipatory expenditures, it's advisable to document key aspects with the entity's authorized representative. If you need help to review documents in German language, reach out to an Attorney who consults international clients on a regular basis.

Do You Have Further Questions in Tenency Law?

For inquiries about contract formation or legal counsel in commercial law, reach out to us at office@geuer.at or by phone at +43-1-4380072. We're here to assist you.

Decision (German only):

OGH 6 Ob 184/23m

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