§ 68. Price difference on a replacement transaction
If you cancel the purchase (heving) and quickly make a replacement purchase (dekningskjøp), meaning you buy the same thing somewhere else, or the seller (selger) makes a resale (dekningssalg) after cancellation, the price difference is used as the basis for compensation (erstatning). You are covered for the difference between what you agreed and what the replacement purchase actually cost. This must be done in a reasonable way and within a reasonable time.
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 is cancelled and the buyer (kjøper) makes a replacement purchase or the seller makes a resale in a reasonable manner and within a reasonable time after the cancellation, the purchase price (kjøpesum) and the price under the replacement transaction shall form the basis when the price difference is to be calculated.
What does this mean?
When a deal falls through, you usually have to get what you needed, or get rid of the goods, somewhere else. The law uses the new price as the basis for calculating compensation.
The buyer — replacement purchase: You ordered goods for NOK X, cancel the purchase because of delay (forsinkelse) or a defect (mangel), and have to buy the same thing somewhere else for NOK Y. If Y > X, you have lost the difference. That is compensation.
The seller — resale: You sold for NOK X, but the buyer does not accept (cancellation on your part or cancellation you are responsible for). You have to sell to someone else for NOK Y. If Y < X, you have lost the difference.
Conditions: Two requirements must be met:
- Reasonable manner: You must not just take the first and most expensive offer. You must act rationally, compare, and make a real effort to get a reasonable price.
- Within a reasonable time: You must act quickly after the cancellation. If you wait too long and prices have changed dramatically, you can lose the right to use the replacement price.
Examples
Ola had ordered spare parts for NOK 18,000 from a supplier. He cancels the purchase because of delay. He needs the parts now and finds them at another supplier for NOK 22,500. He buys them. Under § 68, Ola can claim NOK 4,500 as a direct loss (direkte tap). That is the price difference on a reasonable replacement transaction within a reasonable time. If Ola had waited two months before making the replacement purchase, and prices had risen to NOK 28,000 in the meantime, the seller could object to covering the whole difference. In that case § 69 (prevailing price (gjengs pris) at the time of cancellation) may apply instead.
Sara has sold an excavator for NOK 380,000. The buyer is in breach of contract (misligholder), and Sara cancels the purchase. Two weeks later she sells the machine to someone else for NOK 340,000, as the market had weakened a little. Under § 68, Sara can claim NOK 40,000 in compensation from the original buyer.
Common mistakes
- Waiting too long with the replacement transaction: the market changes, and you lose compensation
- Choosing the cheapest/quickest option without comparing: not a "reasonable manner"
- As a buyer: choosing a luxury version for the replacement purchase. You should cover the same need, not upgrade
- Forgetting to document the price difference and that the transaction was reasonable
What should you do?
When you cancel the purchase and have to make a replacement transaction:
- Act quickly after cancellation, typically within days or weeks
- Compare several offers, and show that you made a reasonable choice
- Document everything: offers, choice, price, date
- Claim the price difference as compensation, with documentation
- § 67Scope of compensation
- § 69Price difference without a replacement transaction
- § 70Duty to limit loss