ILO - Austria Commercial Property

Dispute Resolution / Litigation & Arbitration

Supreme Court limits contractual exclusion of a seller´s warranty

In civil law jurisdictions, sale and purchase agreements tend to be less comprehensive than their common law counterparts. Contracts frequently use certain key phrases which either trigger or exclude a set of legal rules laid down by statute, and which thus need not be explained in detail in the contract.

While such references to sets of legal rules are a useful tool to reduce contract negotiations, they require careful drafting. The Supreme Court recently handed down a decision concerning the contractual exclusion of a seller´s warranty in a property transaction, with surprising results.


Dr. Nikolaus Pitkowitz

M.B.L.-HSG Partner