Late Invoicing Does Not Suspend Limitation Period

Nov 5, 2026 Benn-Ibler Rechtsanwälte

The Austrian Supreme Court (Oberster Gerichtshof, hereinafter OGH) recently considered whether late invoicing postpones the commencement of the limitation period for a claim for payment under a contract for work.

The defendant in the case at hand had engaged the claimant to carry out a comprehensive refurbishment of the defendant’s business premises. The works were completed and handed over; part of the commissioned work was cancelled.

Lower courts dismiss the claim as time-barred

The three-year limitation period for a claim for payment under a contract for work pursuant to Section 1484, item 1, of the Austrian General Civil Code (Allgemeines bürgerliches Gesetzbuch, hereinafter ABGB) generally begins when the claim can first be enforced, no legal impediment, such as the payment not yet being due, remains, and proceedings can therefore be brought, assessed on an objective basis.

Issuing an invoice within one month was reasonable

The OGH rejected the claimant’s contention that the scale of the works prevented the invoice from being prepared within one month. It contained only two unitemised lump sums and three further items, each calculated by multiplying a unit price by the floor area in square metres for the relevant storey.

A longer preparation period therefore appeared unjustified.

The contention that payment was agreed to be made as circumstances permitted was equally unconvincing. Even if the defendant had stated that it could not afford an advance payment and the claimant had expected payment later, this would not establish an implied agreement on payment of the full contract sum. Such an agreement would need to meet the requirements of Section 863 of the ABGB.

The commencement of the limitation period cannot be postponed at will

The OGH held that a contractor cannot arbitrarily delay fulfilling their obligations to control when payment becomes due and the limitation period begins. Allowing this would defeat the purpose of the short limitation period: to clarify promptly the legal status of claims arising from everyday transactions and avoid evidential difficulties.

OGH 1Ob105/26m (27 August 2026)