GENERAL TERMS AND CONDITIONS IN CONTRACTS
- Law Offices Dr. F. Schwank
- May 20, 2025
- 1 min read
Updated: May 28, 2025
All companies use general terms and conditions (‘GTC’) in their contracts, which are usually pre-formulated by them and are intended for a large number of contracts.
This typically creates an imbalance between the company and its business partners. This is why Austrian law requires GTC clauses to meet certain criteria in order to be valid:
GTC only apply by virtue of the parties' agreement (express or implied). It is sufficient if the company declares prior to the conclusion of the contract that it only wishes to enter into a contractual relationship subject to its GTC and the business partner accepts this.
A tacit submission of the business partner may only be assumed if it is clearly recognizable to him that the company only wants to conclude a contract according to its GTC and he had the opportunity to take note of the content of these conditions.
Validity check: Provisions of unusual content used by one party to the contract do not become part of the contract if they are disadvantageous to the other party and the other party did not have to expect them in the circumstances, especially in the external appearance of the document.
Content review: Gross disadvantages may not become part of the contract. The interpretation of a contract is to the disadvantage of the user of the GTC.
Transparency requirement: The content of the contract must be clear and comprehensible.
If you have any questions, please contact your lawyer or notary public.
General terms and conditions in contracts establish the legal framework that defines the rights, responsibilities, and obligations of the parties involved in a business agreement. Clear and well-structured contract terms can help reduce disputes, improve transparency, and support compliance with legal and ethical standards in commercial relationships. These legal and corporate governance concepts are also explored in the business law and ethics seminar & course for executives in Vienna, Austria, where professionals examine contract law, ethical decision-making, and regulatory compliance in business operations.