§ 27. Compensation for delay
If the seller's delay costs you money, you can claim compensation for it. The seller only escapes if he can document that the cause was an obstacle entirely outside his control — one he could not foresee or avoid. Ordinary indirect losses (business interruption, lost profit) require stronger grounds. If it is the seller's own fault, you can claim compensation regardless.
Machine-translated from Norwegian. The Norwegian text is the one that applies. Read the original in Norwegian.Norsk English العربية Polski Українська
The text of the law (unofficial translation)
(1) The buyer (kjøper) may claim compensation for the loss he suffers as a result of delay (forsinkelse) on the part of the seller (selger). This does not apply, however, insofar as the seller proves that the delay is due to an obstacle outside his control which he could not reasonably be expected to have taken into account at the time the contract was made, or to have avoided or overcome the consequences of.
(2) If the delay is due to a third party whom the seller has engaged to perform the purchase wholly or partly, the seller is free from liability only if the third party would also be exempt under the rule in the first paragraph. The same applies if the delay is due to a supplier the seller has used, or to anyone else at an earlier stage in the chain of sale.
(3) The exemption from liability applies for as long as the obstacle is in effect. If the obstacle ceases, liability may be invoked if the seller is then obliged to perform but does not do so.
(4) The rules above in this section do not cover such indirect loss (indirekte tap) as mentioned in § 67 (2).
(5) The buyer may in any case claim compensation if the delay or the loss is due to error or neglect on the part of the seller.
What does this mean?
This is one of the most important sections of the Sale of Goods Act. It governs when the seller must pay for the loss you have suffered because of the delay.
The main rule (first paragraph): You are entitled to compensation. The seller has strict liability — he only escapes if he can show that the delay was caused by an obstacle outside his control which he could neither foresee nor avoid. This is called "strict liability" (kontrollansvar). Examples of obstacles that may qualify: natural disasters, war, strikes, serious illness. Examples that do not qualify: poor planning, ordinary illness, normal logistics problems, financial problems.
Subcontractors count too (second paragraph): The seller cannot blame his suppliers. If the subcontractor would also have had a valid excuse, the seller escapes — otherwise not. You should not be punished because the seller chose the wrong subcontractor.
The obstacle must continue (third paragraph): Once the obstacle is gone, the seller must deliver. If he does not, the liability is back.
Indirect loss is not covered (fourth paragraph): This is important. Consequential losses — business interruption, lost profit, "loss because you could not use the goods" — require stronger grounds (see § 67 (2)). You get your direct loss (direkte tap) covered, not the knock-on effects.
Exception in case of fault (fifth paragraph): If it is the seller's own error or neglect, none of the limitations apply. You can then claim full compensation — including indirect loss.
Comparison: What do you get covered?
| Type of loss | Direct? | Fault required? |
|---|---|---|
| Price difference on a replacement purchase (dekningskjøp) | Yes | No (strict liability is enough) |
| Extra shipping costs | Yes | No |
| Storage rent during the waiting period | Yes | No |
| Lost profit from a lost contract | Indirect | Yes (fault must be shown) |
| Business interruption | Indirect | Yes |
| Loss because the goods could not be used | Indirect | Yes |
Examples
Ola runs a small workshop and had ordered spare parts for NOK 18,000. The seller does not deliver on time. Ola has to buy the same parts elsewhere — for NOK 22,000. The difference of NOK 4,000 is a direct loss. Under § 27 first paragraph, Ola can claim compensation for it, as long as the seller cannot show a valid obstacle. Normal logistics problems at the seller's end are not enough. Ola gets his NOK 4,000 covered.
Eva runs a small design firm and had ordered equipment to deliver an assignment. The equipment arrived three weeks late. Eva lost the assignment, worth NOK 80,000 in profit. Lost profit from a lost contract is indirect loss under § 67 (2) letter c. It is not covered by the first paragraph of § 27. To get this compensated, Eva must be able to show that the seller has been negligent — that is, § 27 (5).
Common mistakes
- Claiming compensation for everything — even though much of it is indirect loss that requires fault
- As a seller: believing "it was my supplier's fault" frees you from liability — it generally does not
- Believing "strict liability" means the seller gets off easily — it is the opposite: the seller must prove the obstacle
- Forgetting the duty to limit your own loss (§ 70)
What should you do?
Document everything:
- Dates of the delay
- Specific costs (receipts, invoices)
- Attempts at a replacement purchase
- Communication with the seller
Claim compensation in writing:
- Specify each loss
- Show documentation
- Set a payment deadline (typically 14 days)
If the seller refuses:
- The Conciliation Board (forliksrådet) for smaller amounts
- The district court (tingretten) for larger cases
- Consider small claims procedure — cheap and simple