What is a fixed-term contract?
Agreement with a binding period means that the agreement is valid for an agreed period. This means that you must pay for the subscription throughout the entire binding period, even if, for example, you move and the service does not work in your new home. For consumer agreements, the binding period for a subscription can be a maximum of 24 months. However, you may have agreed on a longer repayment period for a phone you purchased on credit.
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Binding period means that an agreement is valid for a specified period, a maximum of 24 months for consumer contracts. After that period, the agreement normally transitions to an indefinite contract, which allows for termination with a maximum of one month’s notice. It should be clearly stated in the agreement if there is a binding period and how long it is, and the operator is responsible for showing what has been agreed upon if there is a disagreement. For sole proprietorships, the same maximum limit for binding periods has applied since September 1, 2018.
Maximum Contract Period
The contract period for a subscription must not exceed 24 months and cannot be extended with an additional contract period. If the agreement has a shorter contract period than 24 months, it can be extended as long as the maximum contract period is not exceeded.
It should always be clearly stated in the agreement if you have a contract period and how long it is. If you and the operator do not agree on what is agreed regarding the contract period, it is the operator who must show that a contract period is agreed upon and for how long.
When the contract period expires, the agreement normally transitions to a so-called indefinite agreement and this means that you have the right to terminate the agreement with at most one month’s notice period.
According to Telecom Advisors’ Code of Conduct, a maximum contract period of 24 months also applies to sole proprietorships from September 1, 2018.
If I Want to Break the Contract Period
During the contract period, you are bound to the agreement and cannot terminate it without cost or without paying a possible fee. Breaking an agreement with a contract period prematurely can involve costs, such as a final invoice or a termination fee.
Contract Period for Different Subscriptions
It is common to have a contract period for different types of subscriptions such as mobile phone, broadband, TV, streaming, and other services. It is normally not allowed to stack contract periods, meaning that a bound agreement automatically becomes bound again when the contract period expires.