Austrian Supreme Court addresses excessive term of timesharing contract

In July 2003 plaintiffs had acquired timesharing rights (right to use an appartement one week per year) in defandants’ hotel at CHF 10.000 and a yearly contribution of CHF 490. The contract term was scheduled until 20.01.2050 (!). In their law suit filed in 2008, plaintiffs sought for termination of their contract by 20.01.2015 and refund of EUR 5.297. They claimed that due to settled case-law the term of a timesharing contract must not exceed 10 to 15 years. As thus their contract therefore was partly void they were entitled to the refund claimed for.The claim was dismissed by all levels of jurisdiction: Supreme Court (OGH) confirmed the view of the lower instances that it was not the excessive term of contract itself that had to be regarded void but the lack of a right to terminate the contract after expiration of a reasonable term. Even if notice of termination can be given long time in advance, the legal consequences of termination will only become effective at the time of termination. Thus there was no claim to the declare the contract void “pro futuro” and no due claim for refund.OGH judgement 8 Ob 147/08p of April 4, 2009 available in German here>>.

Leave a Comment