§ 51. What the seller can demand if you do not keep your side of the deal
If you as the buyer (kjøper) do not pay or are in breach of contract (mislighold) of your obligations, the seller (selger) has five tools: demand performance (oppfyllelse) (payment/cooperation), cancel the purchase (heving), claim compensation (erstatning), withhold the goods, and claim late payment interest (forsinkelsesrente). He can combine the claims — compensation is not lost even if he demands something else.
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) If the buyer does not pay or fulfil his other obligations under the agreement or the Act, and this is not due to the seller or circumstances on his side, the seller may demand performance, cancellation of the purchase and compensation in accordance with the provisions of this chapter. He may also withhold performance under § 10 and claim interest under § 71.
(2) If the buyer does not fulfil his obligation to take over the goods, and this is not due to the seller or circumstances on his side, the rules in §§ 55, 57 (2) and 58 apply instead.
(3) The seller's right to compensation and interest is not lost because he asserts other claims or because these cannot be asserted.
What does this mean?
This is the counterpart to § 22 (the buyer's claims in the event of the seller's breach of contract (kontraktbrudd)). When you are the one not keeping your side of the deal, the seller has parallel tools:
1. Demand performance (§ 52, § 53): He can uphold the purchase and demand that you pay or cooperate.
2. Cancel the purchase (§§ 54, 55): If the breach is material, or you do not deliver within an additional deadline (tilleggsfrist).
3. Claim compensation (§ 57): Have specific losses covered.
4. Withhold the goods (§ 10): Not hand over the goods until you pay.
5. Late payment interest (§ 71): Under the Late Payment Interest Act (forsinkelsesrenteloven).
Special rules when the goods are not taken over (second paragraph): If the only problem is that you do not take over the goods (not non-payment or anything else), only a selection of the rules applies — §§ 55, 57 (2) and 58.
Compensation still stands (third paragraph): The seller does not lose the claim for compensation by asserting other claims. He can demand payment and compensation for the delay. He can cancel the purchase and claim compensation for losses.
Examples
Ola has bought equipment for NOK 35,000 on an invoice (faktura) with a 30-day payment deadline. The due date passes — Ola does not pay. The seller can demand payment (§ 52), claim late payment interest (§ 71), withhold future deliveries (§ 10), cancel the purchase if the breach is material or the additional deadline expires (§ 54), and claim compensation for specific losses (§ 57). In practice, the seller first sends a payment reminder, then a debt collection notice, then sends the claim to debt collection (inkasso) — all while the late payment interest accrues.
Anne has bought furniture for NOK 28,000. She has paid, but does not show up to collect it as agreed. The seller has storage costs of NOK 1,500 per week. Under § 51 (2), special rules apply to failure to take over the goods: the seller can cancel the purchase if he has "a particular interest in getting rid of the goods" (§ 55), claim compensation for storage costs (§ 57 (2)), and must notify Anne of any impediments (§ 58).
Common mistakes
- As a buyer: thinking that non-payment is just "a bit late" — it is a breach of contract
- As a seller: forgetting that the right to compensation is not lost by cancelling the purchase
- As a seller: demanding cancellation of the purchase without having set an additional deadline
- Forgetting late payment interest — it accrues automatically from the due date
What should you do?
As a seller when the buyer is in breach of contract:
- Send a payment reminder promptly after the due date
- Calculate late payment interest from the due date
- Set an additional deadline if you are considering cancelling the purchase (§ 54)
- Document losses that can be claimed as compensation
- Consider debt collection for unpaid claims
As a buyer:
- Pay on time, or give notice of problems
- If you have objections: protest in writing, do not just avoid paying