§ 59. The seller's deadline for cancelling after payment
If you have paid the purchase price (kjøpesum), the seller (selger) cannot cancel the purchase without notifying you promptly. In the case of late payment, the notice must come before the seller knows that you have paid. In the case of other breaches of contract (kontraktbrudd), the notice must come within a reasonable time after the seller became aware of the breach, or after the additional deadline (tilleggsfrist) for cooperation (medvirkning) has expired.
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 purchase price has been paid, the seller cannot cancel the purchase unless he notifies the buyer (kjøper) of this: a. in the case of delay (forsinkelse), before he learned of the performance (oppfyllelse) on the buyer's part, or b. in the case of another breach of contract, within a reasonable time after he became aware or ought to have become aware of the breach of contract, or after a reasonable additional deadline set under § 55 (2) has expired.
What does this mean?
Once money has changed hands, it becomes harder for the seller to simply cancel the purchase (heving). The law requires quick action and clear notice.
Two situations:
Late payment (letter a): If you paid late, the seller can only cancel the purchase if the cancellation notice arrived before he knew that you had paid. In other words: once the seller has accepted the payment in hand, he cannot later say "I am cancelling anyway". He would have had to act early.
Other breaches (letter b): If you have paid, but there are other breaches of contract (failure to cooperate, failure to take over the goods), the seller can cancel the purchase if he gives notice within a reasonable time after he became aware of the breach, or after the additional deadline in § 55 (2) has expired.
The logic: Money in the account creates new trust. The seller cannot "trick" you by accepting payment and then cancelling without acting quickly.
Examples
Tom has bought a bicycle for NOK 28,000. He pays a week late. The seller receives the money and leaves it in the account for two weeks, then says "we are cancelling: you paid late". That is not allowed under § 59 letter a. The seller knew that Tom had paid. If he had wanted to cancel, the notice would have had to come before the payment was registered. Once the payment has gone through, the right to cancel for the delay itself is lost.
Anne has bought furniture for NOK 40,000 and paid. She does not collect it. The seller has a particular interest in getting rid of the furniture and sets an additional deadline of 14 days (§ 55 (2)). The deadline expires. The seller sends a cancellation notice within a reasonable time. Under § 59 letter b this is fine: the seller gave notice right after the additional deadline expired.
Common mistakes
- As a seller: accepting payment and trying to cancel later is too late
- As a seller: waiting too long after a breach before sending notice can cost you the right
- As a buyer: believing that payment always blocks cancellation is only true when the ground is delay, not for other breaches
What should you do?
As a seller:
- If you want to cancel because of late payment: do it BEFORE you accept the payment
- If you want to cancel because of other breaches: send notice quickly, within days
- Document the dates
As a buyer:
- If you pay late: ask for confirmation that the deal stands
- If the seller tries to cancel after you have paid: refer to § 59