Rescission
A warranty remedy leading to the reversal of the contract; available only for defects that are not merely minor (section 932 ABGB).
Rescission unwinds the contract: the works are returned and the price is repaid. It is available only for defects that are not merely minor and presupposes that repair is impossible, unreasonable, refused or has failed.
For buildings rescission is often difficult, because an actual reversal is hardly possible. In such cases price reduction comes to the fore. Whether a defect justifies rescission is a question of the individual case.
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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).
Defects, a remuneration dispute, looming litigation?
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