§ 83. Which place of business counts
If a party has several places of business (forretningssteder), the place most closely connected to the purchase is the one that counts, assessed on the basis of what the parties assumed when the purchase was made. If a party has no place of business connected to the purchase, their place of residence 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) When a party's place of business is relevant and he has more than one place of business, the place of business that has the closest connection to the purchase shall be used, having regard to such circumstances as the parties assumed at the time the purchase was made.
(2) If a party has no place of business connected to the purchase, his place of residence shall be used instead.
What does this mean?
Many companies have several offices or warehouses. When the Sale of Goods Act refers to a "place of business" (for example, where the goods are to be collected, or where you are to pay), the question is: which of several possible places?
Main rule: The place most closely connected to the specific transaction. The assessment is based on what the parties assumed when the agreement was made.
Signs of a connection:
- From which location was the agreement made?
- From which location are the goods to be delivered?
- Which location is the customer in contact with?
- Which location issued the invoice (faktura)?
Private individuals: If a party has no place of business (an ordinary private individual), their place of residence applies.
In practice, this section is most relevant for companies with several locations — for example, where goods can be collected under § 6, or where payment is to be made under § 48.
Examples
Anne does business with a company that has its head office in Oslo and a warehouse in Drammen. The agreement was negotiated with the seller (selger) in Oslo, but the goods are in the warehouse in Drammen, and the agreement states that collection is to take place there. Under § 83, Drammen is the relevant place of business for collection purposes (§ 6). For payment, it may be Oslo, where the administration is located — this depends on what was assumed.
Marius is a private individual who sells things on Finn.no from his home in Trondheim. He has no place of business. Under § 83 (2), Marius's place of residence in Trondheim applies. That is where collection is to take place (§ 6), and that is where payment formally is to be made (§ 48) — even though in practice payment is made via Vipps.
Common mistakes
- Believing the "place of business" is always the head office — it is the place relevant to the purchase
- Confusing "place of business" with "registered address" — they are not always the same
- Forgetting that for private individuals, their place of residence is used
What should you do?
- Agree explicitly on where collection and payment are to take place
- Check the company's structure before large purchases
- Remember that the rules of the Act only apply if nothing else has been agreed