§ 3-9. Written agreement, signature and when an agreement binds the customer
Machine-translated from Norwegian. The Norwegian text is the one that applies. Read the original in Norwegian.Norsk English العربية Polski Українська
In brief
- Agreements on financial services (finansielle tjenester) must as a general rule be in writing, and consumers (forbrukere) must sign.
- If the requirements are not followed, the agreement binds the customer (kunde) only if the customer does not invoke this or the service provider (tjenesteyter) proves consent.
- The customer can later demand the terms, and consumers can demand them on paper.
The text of the law (unofficial translation)
§ 3-9. Conclusion of the agreement
- that the content of the agreement at that time is available to the customer in its entirety in a written document
- that a secure authentication method is used to confirm the conclusion of an agreement with the customer and with the specified content
- that the agreement is signed if the customer is a consumer.
- if the customer does not wish to invoke the lack of a binding agreement, or
- if the service provider, taking into account the nature of the agreement and the significance of the terms for the customer, proves that the customer has nevertheless consented to be bound by the terms of the agreement.
Letter b does not apply to personal guarantee (kausjon) agreements that do not contain information about the guarantee liability under § 3-36 second paragraph. If the customer is a consumer, letter b also does not apply to an initial agreement on credit or personal guarantee that has not been signed under the second paragraph letter c.
What does this mean?
The general rule is that an agreement on a financial service must be concluded in writing. The second paragraph sets three requirements for the service provider when the agreement is concluded. The customer must have the whole text of the agreement available in a document. The service provider must use a secure method to check identity and confirm what has been agreed. Consumers must also sign the agreement.
The consequence of skipping the requirements is that the agreement does not bind the customer. There are two exceptions. The customer can choose not to invoke the fact that the agreement is not binding. The service provider can also make the agreement apply by proving, that is, showing with evidence that it is likely, that the customer nevertheless consented to the terms. In that case, the nature of the agreement and how important the terms are for the customer are taken into account. The exceptions have their own exceptions. The consent exception does not apply to personal guarantee agreements where the guarantor (kausjonist) lacks the information that § 3-36 second paragraph requires, including the maximum amount. For consumers, the consent exception also does not apply to an initial agreement on credit or personal guarantee that has not been signed.
The fourth paragraph gives the customer a right even after the agreement has been concluded. On request, the service provider must immediately give access to a written document with the terms. Consumers can demand that the document be provided on paper.
The section is the first step in a chain. Before the agreement is concluded, the customer must have received terms and information, and § 3-22 gives the customer the right to request them for as long as the contractual relationship lasts. Under § 3-12, the information the customer was to receive under § 3-22 first paragraph becomes part of the agreement, and the service provider must ensure that the terms are included in the written agreement. If the agreement is later changed, the requirements in §§ 3-9 to 3-12 apply correspondingly to the new terms, as far as appropriate, according to § 3-13. Under § 3-10, individual services covered by an initial agreement do not have to go through the requirements again, when the initial agreement complied with them. § 3-11 states that each consumer counts as one customer when several consumers are part of the same agreement. The rules of evidence in § 3-6 apply when a customer disputes an agreement concluded electronically.
Example: A consumer is sent the agreement but never signs it. The agreement is then not binding, unless the consumer does not wish to invoke this, or the service provider proves that the consumer nevertheless consented. For an initial agreement on credit, the consent exception does not apply to consumers when the signature is missing.