Introduction to the Law of Austria

Edited by

Christoph G rabenw arter

Martin Schauer

i ■ t Wolters KluwerLaw & B us in e s s

Table of Contents

List of E ditors an d C on trib u to rs xix

Preface xxi

C h a pter 1

C onstitu tio n a l LawC hristoph G rabenw arter 1

§1.01 In troduction 1

§1.02 T he Basic Principles of the A ustrian Federal C onstitu tion 3

[A] D em ocratic Principle 4

[B] R epublican Principle 5

[C] Federal Principle 5[D] P rinciple of the Separation of Pow ers 6[E] Liberal P rinciple 6[F] P rinciple of the Rule of Law 6

§1.03 T he L egislature 7

[A] Federal Legislation 7

[B] L and Legislation 8§1.04 T he E xecutive 8

[A] Federal G overnm ent 8[B] Federal President 9

§1.05 Jud ic iary 9

[A] O rganisation of O rdinary Courts 9

[B] A dm inistra tive Ju risd iction 10

§1.06 F undam en ta l Rights 11

§1.07 T he C onstitu tional Court 12§1.08 N eutrality 12§1.09 T he Federal C onstitu tion and In ternational Law 14§1.10 A ustria and In ternational or S upranational O rganisations 16

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C h a pter 2

A dm in istra tive Law A n n a Garnper

§ 2 .0 1 H istorical B ackground § 2 .0 2 Definitions

[A] W hat Is ‘A dm in istra tion ’?[B] W hat Is ‘A dm inistrative L aw ’?

§ 2 .0 3 Categories of A dm inistration§ 2 .0 4 C onstitu tional D eterm inants§ 2 .0 5 A dm inistrative O rganisation§ 2 .0 6 Legal Sources of A dm inistra tive Law§ 2 .0 7 Legal Protection in A dm inistrative M atters

[A] Judicial C ontrol over the A dm inistra tion 11 ] The A dm inistra tive Courts[2] T he A dm inistrative High Court and the C onstitu tional

Court[B] Inform al Legal Protection and O ther C ontrol C hannels

§ 2 .0 8 Areas of ‘Special’ A dm inistra tive Law: Selected Exam ples § 2 .0 9 A dm inistrative P rocedural Law§ 2 .1 0 T rendsSelected B ibliography (In English)Selected B ibliography (In G erm an)

C h a pter 3

T he Law of Persons M artin Schauer <S Julia K ienast

§ 3 .0 1 In troduction§ 3 .0 2 Legal C apacity of N atural Persons

[A] Scope[B] B eginning and End[C] Personal Rights[Ü] C apacity to Perform Legal Acts

[1! Age[2] Sanity[3] Special Affairs

[E] C apacity to Be Liable for T orts § 3 .0 3 Legal C apacity of A ssociations

[A] Scope(1 ] ‘T he Separation P rincip le’

[B] Beginning and End[C] Personal Rights[D] C apacity to C ontract

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[E] C apacity of Being Liable for Tort 53§3.04 System of A ssociations in A ustrian Law 53

[A] C orporate Bodies 54[ 1 ] C orporate Bodies u n d er Public Law 55[2J C orporate Bodies u n d er P rivate Law 55

[a] C orporations 55[b] F oundations (S tiftu n g en ) 56[c] G roup of Affiliated C om panies (Konzern) 57

[B] E xcursus: E n trep reneu r - C onsum er 58

C h a pter 4

C ontrac tsM o n ika H interegger 59

§4.01 In troduc tion 59§4.02 G eneral Principles of C ontract Law 61

[A] Private A utonom y and Freedom of C ontract 61[B] Form R equirem ents 61[C] T he C oncept of th e Legal T ransaction 62[D] In terp re ta tion of C ontracts 62

§4.03 C onclusion of th e C ontract 63[A] Offer and A cceptance 63[B] S tandard T erm s and C onditions 64|C) P re-con trac tual O bligations and Culpa in Contrahendo 65

§4.04 D efects of Validity and D efects in th e C ontracting Process(Defects of the Will) 66IA | D efects of V alidity 66[B] D efects of th e W ill 66[C] O ther D efects in the C ontracting Process 67

§4.05 P erform ance D efaults 67I A] N on-perform ance (L eis tungss tönm gen ) 67

(11 Im possibility of Perform ance 67[2] Default 68[3] W arran ty 69

[B] Rescission Rights of the C onsum er 70§4.06 M odification of C ontracts 70§4.07 End of an O bligation 71§4.08 Special T ypes of C ontracts 72

[A] D onation 72[B] Sales C ontract 73[C] Loan and Credit A greem ent 74[D] M andate and Pow er of A ttorney 75

[1) T he ‘C ontract of Pow er of A tto rney’ 75[2] M andate 76

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[3] Pow er of A ttorney 77[E] C ontract for W ork 78[F] Loan for Use and Lease 79

[1] G eneral C lassification 79[2] Loan for Use 79[3] Lease 80

[G] Deposit 81Selected B ibliography 82

C h a pter 5

C om m ercia l C ontractsFriedrich H arrer 85

§5.01 In troduction 85§5.02 Form 89§5.03 Selected Exam ples 90

[A] Prelim inary C om m ent 90[B] Sale of Goods (W arenkauf) 90[CJ S erv ice/W ork C ontracts {W erkvertrag) 91[D] D istribution A greem ents {Vertriebsverträge) 92

[ 1 ] G eneral O verview 9212] C om m ercial Agency A greem ents

CHandelsvertreterverträge) 92[3] D istribu torsh ip A greem ents (Vertragshändlerverträge) 93[4] F ranchising C ontract (Franchisingverträge) 94

[E] Service C ontracts (D ienstleistungsverträge) 95[F] Bank G uaran tee 96

C h a pter 6

T ort LawF erdinand K erschner & Erika W agner 99

§6.01 O verview of Special Liability Provisions of th e ABGB 102§6.02 Liability D ue to the V iolation of Protective Law 109§6.03 Legal D uties to M aintain Safety 109§6.04 Liability Due to Breach of C ontract 110§6.05 C ontract w ith P rotective Effect in Favour of T hird Parties 111§6.06 V icarious Liability 112§6.07 R equirem ents for Liability of the 'E rfü llungsgehilfen’ 113§6.08 V icarious Liability of the Juristic Person 114§6.09 Liability for Pure Pecuniary Loss 114§6.10 Liability of Public A uthorities and Executive O rgans 115§6.11 O utlook 116Selected B ibliography 116

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Table of C ontents

C h a pter 7

Law of P ropertyB ernhard A . Koch & K ristin N em e th 119

§7.01 In troduc tion 119[A] T erm inology and Sources 119[B] Land R egister (G rundbuch) 120

§7.02 Im portan t Princip les of A ustrian P roperty Law 122[A] A bsolu te Rights (A bso lu te Rechte) 122[B] N um erus C lausus (Typenbeschränkung , Typenzw ang) 122IC ) P rincip le of Speciality [Spezialität] 123[D] P rincip le of C ausality (K ausalitä tsprinzip ) 123[E] Publicity (Publizität) 124

§7.03 Possession (B esitz) 124[A] H older (Inhaber) versus Possesso r (Besitzer) 124[B] Q ualifications of Possession 124[C] T ypes of P ossession 125[D] M odes of O btain ing Possession 125[Ej Loss of P ossession 126[F] P ro tection of Possession 126

[1] Sum m ary Proceedings (B esitzstöm ngsverfahren ) 126[2] Actio Publiciana 126

§7.04 O w nersh ip (E igen tum ) 127[A] T ypes of O w nersh ip 127

[1] O w nersh ip D efined 127[2] C o-ow nership (M iteigen tum ) 127[3] Jo in t O w nersh ip (G esam thandeigentum ) 128[4] A partm en t O w nersh ip (W ohnungseigen tum ) 128

[B] M odes of A cquiring O w nersh ip 128[1] D erivative A cquisition (Derivativer E igentum serwerb) 128[2] O ccupation (Z ueig n u n g ) 129[3] B ona Fide A cquisition (G utglaubenserwerb) 129[4] A cquisitive P rescrip tion (Ersitzung) 130

[C] Loss o f O w nersh ip 130[D] Protection of O w nersh ip 131

[1] Rei v indicatio (E igentum sklage, § 366 ABGB) 131[2] N eighbourhood Claim s (N achbarschaftsklagen,

§§ 364 ff. ABGB) 131[3] O ther A ctions against D istu rbances of O w nership

(E igentum sfreiheitsklage, § 523 ABGB) 132§7.05 Serv itudes 132

[A] P rincip les and D efinitions 132[B] T ypes of Servitudes 133

[1] Real Servitudes (G runddienstbarkeiten) 134

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[2] P ersonal Servitudes [Personalservituten) 134[a] Usage (Gebrauchsrecht, §§ 504-508 ABGB) 134[b] U sufruct {Fruchtgenuß, §§ 509-519 ABGB) 135

[3] Excursus: Realty C harge [Reallasten) 135[C] M odes of A cquiring Servitudes 135

[1] Title 135[ 2] M odus 136[3] T he Special Case of P rescrip tion 136[4] T he Special Case of W ays of N ecessity [Notwege] 137

[D] Loss of Servitudes 137[E] P rotection of Servitudes 137

§7.06 Security Rights in P roperty 137[A] Types of Security Rights 137[B] Possessory Pledges in P articu lar 138

|1] A cquiring Possessory Pledges 138[2] R elationship betw een C reditor and Pledgor 139[3] Realising Possessory Pledges 140

[C] M ortgages in Particular 140Selected B ibliography 141

C h a pter 8

Fam ily LawA strid D eixler-H iibner & Sebastian Reiter 143

§8.01 In troduction 143§8.02 The Sources of Family Law 144

[A] C onstitu tional Law 144[B] Family Law S tatu tes 144

§8.03 M atrim onial Law 146[A] E ngagem ent 146[B] M arriage 146[C] M atrim onial Rights and D uties 147

[1] In G eneral 14712] N am e 147[3] M ain tenance 148[4] M arital Hom e 149

[D] M atrim onial Property 149[E] D ivorce 149

[1] D ivorce for Fault (§ 49 EheG) 150[2] D ivorce on the G rounds of Illness 151[3] D ivorce for Irreparab le D isruption of M arriage and

D issolution of D om estic C om m unity 151[4] D ivorce by M utual C onsent 151

[F] Legal C onsequences of D ivorce 152

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[1] M ain tenance 152[2] Social Security Law 154[3] D ivision of M atrim onial A ssets 154[4] Loans 156

[G] R egistered P artnersh ip 157[H] N on-m arita l C ohabita tion 157

§8.04 Law of Paren ts and Child (K indschaftsrecht) 158[A] T he C hild’s W ell-Being {Kindeswohl) 158[B] P aren tage 158

[1] M otherhood 158[2] Patern ity 159[3] M edically A ssisted R eproduction 159[4] A doption 159

[C] N am e 161[D] C ustody and C are {Obsorge) 161[ E] M ain tenance 163

[1 ] T he C h ild ren’s Right to M ain tenance 163[2] T he P a ren ts ’ Right to M ain tenance 164

[F] E ndow m ent (A u ssta ttu n g ) 164[G] P ro tection against V iolence 165

Selected B ib liography 165

C h a pter 9Law of S uccessionC onstanze Fisch.er-Czerm.ak & K atharina W ind isch 167

§9.01 G eneral A spects of th e A ustrian Law of Succession 167[A] Sources of Law 167[B] F undam enta l T erm s and Principles 167[C] E state 168

§9.02 T he Right to Inherit 169§9.03 In testa te Succession 170

[A] System of Succession per Stirpes 170[B] A doption 171[C] T he S pouse’s Share 171[D] T he R egistered Life P a rtn e r’s Share 172[E] T he S ta te’s Right to Succeed to H eirless P roperty 172

§9.04 T esta te Succession 173I A] G eneral 173[B] T he Will 174

[1] Form s of Will (Testan ien tsform en) 174[a] Private W ills 174[b] Public W ills 175[c] W ills in Em ergency S ituations (N ottestam ent) 175

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[2] T he Join t Will (gem einschaftliches T estam en t) 175[3] W itnesses 176|4] R evocation 176[5] In terp re ta tion 177[6] C on testation of a W ill 177

[C] A ccretion 178[D] T estam en tary B equests 178[E] T estam en tary B urdens, C onditions and T im e L im itations 179

[1] T estam en tary B urdens 179[2] C onditions and T im e L im itations 180

[F] Substitu tion 180(1) S ubstitu te H eirs 180[2] S ubsequent Heirs 181

[G] T he C ontract of Inheritance (Erbvertrag) 182§9.05 S tatu tory C om pulsory Portion 183

[A] G eneral 183[B] W ithdraw al of th e S tatu tory C om pulsory Portion 185[C] R eduction of th e S tatu tory C om pulsory Portion 186

§9.06 Legal S tatus of th e H eirs 186[A] C om m unity of Co-Heirs 186[B] T he H eir's Liability for the D ebts of th e Estate 187

§9.07 P roceedings before th e P robate Court 187§9.08 Inter Vivos D onative P rom ises for th e Event of the D onor’s D eath 188§9.09 Preview on Law Reform of Law of Succession 189

C h a pter 10

C om pany LawS u sa n n e Kalss 191

§10.01 C om pany Law: G eneral R em arks 191[A] H istorical In troduction 191[B] Im portan t Legislation 192[C] N um erus C lausus in C om pany Law 192[D] Practical Significance 193[E] M andatory Provisions 193[F] C lassification of C om pany Law 194[G] The C om pany Register 195[H1 Participation of Em ployees 195

§10.02 Types of O rganisation 196(A) T he P artnersh ip u n d er Civil Law 196[B] G eneral P artnersh ip (OG) 197(Cl Lim ited P artnersh ip (7<G) 199[D] GmbH & Co KG 201[E] Limited Liability C om pany 201

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[F] Stock C om pany (AG) 204[G] C ooperative Society 205

§10.03 G roup of C om panies 206§10.04 C losing R em arks 206S elected B ib liog raphy 207

Chapter 11In tro d u c tio n in to A u strian L ab o u r LawFranz M arlio ld 209

§11.01 In troduction : Sources of Law 209§11.02 Ind iv idual L abour Law 210

[A] Em ploym ent C ontract 210[B] C ategories of E m ployees 210[C] W orking T im e 211[D] R em unera tion 212[E] R em unera tion w ithou t W ork 213[F] H oliday 214[G] S everance Pay 214[H] D ism issal w ith N otice {.'Kündigung') 215

[1| G eneral Rules 215[2] N otice Period 216[3] C ontesting th e D ism issal 217

[I] D ism issal w ithou t N otice 218[1] G eneral R ules 218[2] W hite-C ollar Em ployees 219[3j Blue-Collar W orkers 220

[J] T ransfer of U ndertak ing 220§11.03 C ollective L abour Law 221

[Aj Social Partners 221[1] T he S tatu tory R epresen tation O rganisations 221[2] T he V olun tary R epresen tation O rganisations 221

[B] C ollective A greem ents 222[ 1 ] Parties 222[2] C ontent and Legal Effect 223[3] Scope 223[4] Collision of Collective A greem ents 224[5] Substitu tes of th e Collective A greem ent 224

[C] Industria l A ction 225[D] W orks C ouncils 226

[ 1 ] Scope and Definition 226[2] Form s of W orks C ouncils and T heir C om petences 226[3] Election, C om position and O peration of the W orks

Council 227

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[4] The Rights of the W orks C ouncils 227[5] W orks A greem ents 229

Selected B ibliography 230

C h a pter 12

P rivate In te rn a tio n a l LawBrigitta Lurger 231

§12.01 In troduction 231§12.02 Family Law 235§12.03 Succession Law 240§12.04 C ontractual O bligations 242§12.05 N on-contractual O bligations 244§12.06 Property Law 247§12.07 C orporations 249

C ha pter 13

Civil P rocedurePaul O berham m er 251

§13.01 Sources of Law 251[A] G eneral 251IB] The A ustrian Code of Civil P rocedure 252

§13.02 The Court System 253§13.03 Ju risd iction 254§13.04 F irst-Instance P roceedings 255§1.3.05 The Fact-Finding Process 257§13.06 Rem edies 258§13.07 Special Proceedings 259

C hapter 14

C rim inal Law and C rim inal P rocedurePeter Lew isch 261

§14.01 G eneral 261§14.02 Basic Principles of S ubstan tive Crim inal Law 262

[A] Principle of Legality 2621BJ Principle of C ulpability 263IC] Extensions of Crim inal R esponsibility 265[D] P un ishm ent 266[E] Pun ishm en t of Legal Persons 267[F] Crim inal Jurisd iction 267

§14.03 An O verview regarding the Crim inal C ode’s Special Part 268§14.04 Crim inal P rocedure 272

[A] F ram ew ork and Basic Principles 272

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[B] Role and T asks of the P rosecu tor [Cl T he A ustrian C ourt System

C h a pte r IS

A ustrian T ax LawM ichael L ang & Erich Schaffer

§15.01 T he Legal F ram ew ork in A ustrian Tax Law §15.02 Incom e T axation

[A] Indiv idual Incom e T ax Act (E inkom m ensteuergesetz , ‘EStG’}[ 11 P ersonal Scope: U nlim ited and Lim ited Tax Liability[2] Incom e Types[3] T ax E xem ptions|4] D eterm ination of th e A ssessm ent Base for Taxation

[a] D ualism in th e C om putation of T axable Incom e[b] D ifferent M ethods for th e C alculation of Incom e[c] O perating E xpenses and Expenditure[d] Special Expenses and E xtraordinary B urdens

[5] C alculation of Tax Burden: Tax Rates[6] M ethods of Levying

[a] A ssessm ent[b] W age Tax[c] Capital Yields Tax

[7] Lim ited Liability[B] C orporate Incom e Tax Act (K örperschaftsteuergesetz, ‘KStG’)

[11 Scope[2] T axable Incom e

[a] Incom e C alculation A ccording to the Rules of the EStG

[b] C ontribu tions and W ithdraw als[c] Profit D istributions[d] D eductions and Special Expenses

[3] G roup T axation[a] G eneral Inform ation and R equirem ents[b] C onsolidation of Incom e

[4] P artic ipation Exem ption[a] G eneral Inform ation and N ational Participation

Exem ption[b] In ternational Participation Exem ption

(Participation of 10% or More)[c] In ternational Exem ption for M inor Shareholdings

(Share of Less th an 10%)§15.03 A voidance of D ouble T axation and Tax T reaty Policy

[A] U nilateral M easures

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281

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294

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[BJ Tax T reaties §15.04 O ther Taxes

[A] V alue A dded Tax (VAT)[B] Real Estate T ransfer Tax (G rundenverbsteuergesetz, ‘GrEStG’)[C] T ransaction Duties[D] Inheritance and Gift Taxes (E rbschafts- un d

Schenkungssteuergesetz, ‘ErbStG ’)§15.05 P rocedural A spects

[A] From Filing the Tax R eturn to th e A dm in istra tive Act IB] Protection of T axpayers’ Rights

[1] A ppeals against A ssessm ents[2] Federal Financial Court (B undesfinanzgerich t, ‘BFG’)[3] Suprem e A dm inistra tive Court (V erw altungsgerichtshof,

‘VwGH’)[4] C onstitu tional C ourt (V erfassungsgerichtshof, ‘VfGH’)

Selected B ibliography

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