In one-time contracts, both parties fulfil their obligations at the same time. Examples include buying groceries, a car or a real estate property.
Ongoing contracts are valid until further notice. They can be terminated by giving the notice specified in the contract. Typical ongoing contracts relate, for example, to electricity, waste management, district heating and magazine subscriptions.
Fixed-term contracts expire after a specified period (e.g. 12 months). It is forbidden for companies to link fixed-term contracts to each other: i.e. once a fixed-term contract expires, it may not automatically be replaced by another fixed-term contract. What is acceptable is for a fixed-term contract after expiry to turn into an ongoing contract that can be terminated through normal notice procedures. If a company offers this kind of contract model, the consumer must be clearly informed in advance that the contract will automatically continue until further notice after the expiry of the fixed term.
Contract termination and notice periods