Price reduction
A secondary warranty remedy: reduction of the remuneration in line with the reduced value of the defective works, without dissolving the contract (section 932 ABGB).
Price reduction comes into consideration where the repair does not take place or is impossible or unreasonable. The remuneration is reduced in the ratio in which the value of the defect-free works stands to the value of the defective works (the relative method of calculation).
Unlike rescission, price reduction leaves the contract in place. It is suited to defects that do not entirely frustrate use but noticeably reduce the value of the works. In addition, where the contractor is at fault, damages may exist.
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Legal basis
Statutory texts for orientation; the version in force at the relevant time prevails.
This explanation gives a general overview of Austrian law and does not replace advice in an individual case. The specific circumstances of your construction project are always decisive.
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Warranty
The statutory, fault-independent liability of the contractor for defects that the works already had at handover (sections 922 et seq. of the Austrian Civil Code, ABGB).
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Repair (cure)
The primary warranty remedy: the contractor removes the defect by repair or replacement, free of charge for the client (section 932 ABGB).
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Rescission
A warranty remedy leading to the reversal of the contract; available only for defects that are not merely minor (section 932 ABGB).
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Damages
Fault-based compensation for loss caused by a defect or breach of duty; on construction projects often alongside warranty (sections 1293 et seq., 933a ABGB).
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