§ 42. Your right to withhold payment

If the seller (selger) has committed a breach of contract (kontraktbrudd), whether a delay (forsinkelse) or a defect (mangel), you can withhold enough of the payment to make sure your claim is covered. This is the most important leverage you have. You may only withhold a reasonable amount, not the whole purchase price (kjøpesum) for a minor fault.

Kjøpsloven (the Sale of Goods Act)·LOV-1988-05-13-27

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)

If the buyer (kjøper) has claims arising from the seller's breach of contract, the buyer may withhold as much of the purchase price as will ensure that he gets the claim covered.

Source: Lovdata — Kjøpsloven (the Sale of Goods Act) § 42

What does this mean?

If you still owe the seller money, typically on an invoice (faktura), and the seller has been in breach of contract (mislighold) in some way, you can choose not to pay the full amount. You withhold enough to cover your claim.

Two conditions:

Why is this so important? The right to withhold payment (tilbakeholdsrett) is the practical form of leverage in the law on sale of goods. While the money is still with you, the seller has an incentive to resolve the matter. Once the money is gone, you have to chase it.

You must communicate: Withhold in writing, and tell the seller why. Withholding without saying anything looks like a breach of contract on your part.

Comparison: How much can you withhold?

Size of the claimRecommended amount to withhold
NOK 800 minor faultNOK 1,000-2,000 (margin)
NOK 8,000 repairNOK 10,000-12,000
The entire item unusableThe entire remaining payment
Extent not yet knownA reasonable estimate

Examples

Lars has ordered a bathtub for NOK 24,000. He has paid NOK 12,000 in advance. The rest is to be paid on delivery (levering). The bathtub arrives, but there is a defect: the surface has a large stain that requires professional polishing costing NOK 4,000. Lars can withhold an amount that covers the claim. He writes: "I am withholding NOK 5,000 of the final payment until the defect has been fixed. I am paying the rest today." That is reasonable: enough to cover the cost with a small margin.

Eva has ordered new doors for NOK 45,000, with NOK 15,000 paid in advance. The doors were to be delivered on 1 May. It is now 1 July and there has still been no delivery. Eva has to rent a temporary solution for NOK 8,000. When the doors are finally delivered, Eva can withhold NOK 8,000 of the remaining payment to secure her claim for compensation.

Tom has bought a dishwasher for NOK 9,500. It has a minor fault that costs NOK 800 to fix. Tom has paid NOK 5,000 and owes NOK 4,500. He decides not to pay anything. That is probably unreasonable. If he withholds NOK 4,500 for an NOK 800 fault, the seller can say that Tom himself is in breach of contract. Tom then risks late payment interest (forsinkelsesrente) and other consequences.

Common mistakes

  1. Withholding the entire amount for minor faults, which may be regarded as breach of contract
  2. Withholding without saying anything: tell the seller why
  3. Withholding without having a concrete claim
  4. Forgetting to show documentation of the claim

What should you do?

When you withhold payment:

  1. Assess your claim: how much are you entitled to in kroner?
  2. Set a reasonable amount with a margin, 25-50% above the claim itself
  3. Send the seller written notice with your reasons
  4. Pay what you actually owe; do not withhold more than necessary
  5. Release the money when the seller has resolved the matter

Template:

"I refer to [item/agreement]. Because of the [delay / defect] that I complained about on [date], I am withholding NOK [amount] of the purchase price pursuant to section 42 of the Sale of Goods Act (kjøpsloven § 42). I will pay the remaining amount of [NOK X] on [date]. The withheld amount will be released when [specific condition]."

Frequently asked questions

Can I withhold payment if I have already paid?
No. In that case it is rather a "claim for repayment" you must make. The right to withhold payment requires that the money is still with you.
What about a card payment that has already been charged?
The money is with the seller. In that case you must instead request a chargeback or make a claim under the other rules of the Sale of Goods Act.
Related sections
All sections of the Sale of Goods Act →
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