IGAL UPDATES //

BRIEFLY NOTED – INADMISSIBLE CONTRACT CLAUSES IN BUILDING SAVINGS CONTRACTS by Dr. Alexander T. Scheuwimmer (Austria)

In a recent decision, the Austrian Supreme Court dealt with contractual clauses in building savings contracts. As a rule, these contracts were concluded for a term of six years. An account management fee was charged for each calendar year started. If the agreed term was not adhered to or the savings payment was not made in full, an administration fee of 0.5 percent of the contract amount was charged and interest was calculated retroactively to 0.5 percent. However, these clauses are inadmissible. (8 Ob 125/21x)

Dr Alexander T. SCHEUWIMMER

Am Heumarkt19

A1030 Vienna

Austria

T +43 (0)1 30 50 574

a.scheuwimmer@taiolegal.at