Legal Literature

Unfair Contract Terms Directive, Article 2, (a) Unfair Contract Terms Directive, Article 3, 1.

In a recent decision, the Austrian Supreme Court applied the law on unfair contract terms to loan agreements for a credit amount of a couple of million Euros. The article discusses what led the courts to apply a stringent test of reasonableness, originally designed solely for general terms and conditions, to essentially all contracts. At first the author provides a brief overview of the legislative process, the definition of general terms and conditions and the decision in question. Following this, the author presents his personal view in this matter.

The abstract of this article is also available in English.