When termination for cause ends a contract, it happens on the spot. No notice period, no grace period. But Austrian law sets a more stringent bar: courts weigh whether the “cause” was truly serious enough to make continuing the contract unreasonable, whether it was foreseeable at the time the contract was concluded, whether it was self-inflicted, and whether it was raised without delay once discovered. Get any of that wrong, and the termination can vaporize.

In her contribution “Wenn sofort Schluss sein soll” for Dispute Resolution by Produktfamilie Deutscher AnwaltSpiegel,  KNOETZL Counsel Kirstin McGoldrick takes a closer look at these practical traps under Austrian law: What counts as a genuinely important reason? Does the clock really start ticking the moment you find out? Must termination for cause always take instant effect, and can a defective one still be salvaged as an ordinary termination? Kirstin unpacks the nuances that decide whether a termination holds up or falls apart.

The article has since been selected as a guest contribution in the F.A.Z. PREMIUM Einspruch newsletter.

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