§ 48. Where must you pay?
The main rule is that you must pay at the seller's place of business. If payment is made against handover of goods or a document, you pay where the handover takes place. The duty to pay also includes accepting a bill of exchange or providing a bank guarantee (bankgaranti) if this has been agreed. If the seller moves after the agreement was made, he must cover the extra costs caused by the move.
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 purchase price (kjøpesum) shall be paid at the seller's place of business (where applicable, place of residence, cf. § 83). If payment is to be made against handover of the thing or a document, it shall be made at the place where the handover takes place.
(2) The duty to pay the purchase price also includes a duty under the agreement to accept a bill of exchange, open a letter of credit, provide a bank guarantee or other security, and to take other measures to have the purchase price paid.
(3) The seller is responsible for increased costs in connection with the payment that are due to his having moved his place of business after the purchase was concluded.
What does this mean?
The law gives three rules on the place and method of payment:
Where: As a main rule, you pay where the seller (selger) has their place of business (or place of residence if a private individual). In practice today, this means you send money to the seller's account — that is a form of payment "at the seller's place of business".
If payment is made against handover — typically goods for money in a shop or on collection — you pay where the handover takes place.
What: The duty to pay is not just about transferring money. If you have agreed on a bank guarantee, letter of credit or other security, you must arrange that too. This applies especially in business-to-business trade and international trade.
The seller moving: If the seller moves after the purchase is concluded and this leads to extra costs for you (fees, longer travel for cash payment), the seller must cover them.
In practice, this section is most relevant for B2B trade and international trade. Between private individuals, most payments are made via Vipps or bank transfer.
Examples
Anne buys an old chest of drawers from Tom for NOK 8,500. She agrees to collect it — and pay — at the same time. She turns up, checks the chest of drawers, and pays via Vipps while standing there. This is payment "where the handover takes place" under § 48 first paragraph. The usual private scenario.
Tom runs a small import company and buys goods from a German supplier. The agreement requires Tom to provide a bank guarantee before the goods are shipped. Tom's duty to pay is extended under § 48 (2) — he must not only transfer money but also make sure the bank guarantee is in place. Otherwise he is in breach of contract (mislighold).
Common mistakes
- Thinking payment is made when you send a Vipps — it must also arrive
- Forgetting that bank transfers can take days
- As a B2B buyer: thinking a bill of exchange/letter of credit is optional when it has been agreed
What should you do?
- Confirm payment — Vipps confirmation, bank statement, receipt
- Be aware of time differences in international trade
- Allow safety margins for large purchases — start the payment well before the handover