§ 69. Price difference without a replacement transaction
If you cancel the purchase without making a replacement purchase (dekningskjøp) (or resale (dekningssalg)), and there is a prevailing price (gjengs pris) for the goods, the compensation (erstatning) is calculated from the difference between the agreed price and the prevailing price at the time of cancellation of the purchase (heving). If the purchase is cancelled after the goods have been taken over, the prevailing price at the time of takeover is used instead.
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 purchase has been cancelled without a replacement transaction as mentioned in § 68 being made, and there is a prevailing price for the goods, the purchase price (kjøpesum) and the prevailing price at the time of cancellation shall form the basis when the price difference is to be calculated. If the purchase is cancelled after the goods have been taken over, the prevailing price at the time of takeover shall instead form the basis.
(2) The prevailing price is the price at the place of delivery for goods of the same kind or, if there is no prevailing price there, at another place that can reasonably be treated as equivalent, but with account taken of differences in transport costs.
What does this mean?
Sometimes neither party makes a replacement transaction — perhaps the goods were special, or the need disappeared. The compensation must still be calculated — and the law says: use the market price.
If the goods have not been taken over (first paragraph, first sentence): The price difference is calculated as the difference between what you agreed and the prevailing price (market price) at the time of cancellation.
If the goods were taken over before cancellation (same paragraph, second sentence): Then the prevailing price at the time of takeover is used instead. The logic: that is when the risk (risiko) passed to the buyer (kjøper), and the price at that time is the relevant reference point.
What is the "prevailing price" (second paragraph): The market price at the place of delivery for goods of the same kind. If there is none there, a comparable place is used — adjusted for transport costs.
In practice this section is rarely used — the parties most often make replacement transactions and use § 68. But when no replacement takes place, § 69 provides a fallback.
Examples
Lars has ordered a specific type of concrete elements for NOK 240,000. He cancels the purchase because of delay (forsinkelse) — and changes his plans so that he needs something completely different. He does not make a replacement purchase. The market price for equivalent concrete elements has risen to NOK 265,000 at the time of cancellation. Under § 69, Lars is entitled to NOK 25,000 in compensation — the price difference compared with the prevailing price.
Marius has bought goods and taken them over. Two weeks later he cancels the purchase because of a defect (mangel). He does not make a replacement purchase. Under § 69 (1) second sentence, the prevailing price at the time of takeover is used — not at the time of cancellation. This applies because Marius had the risk from the takeover, and it is that market situation that is relevant.
Common mistakes
- Calculating compensation from today's market price, not the price at the time of cancellation
- Forgetting to adjust for transport costs
- Believing compensation is zero if you have not made a replacement purchase — you can still get market-based compensation
What should you do?
- Document the market price at the time of cancellation (or the time of takeover) with several sources
- If prices have changed dramatically, consider whether a replacement transaction is a better route
- Remember § 70 — the duty to limit the loss