When an agreement is not followed up as expected, it can lead to frustration, loss and practical challenges. As a private individual in Norway, you still have rights if someone breaks a contract. In some cases, you may also be entitled to financial compensation.
What is considered a breach of contract?
A breach of contract – also called a breach of contract – occurs when one party fails to fulfill their obligations under the agreement. This can happen in various ways, for example:
- A craftsman who does not complete the project on time (delay)
- A used car that has hidden or serious defects (defects)
- A service you have paid for that is not delivered (non-fulfillment)
Breach of contract can therefore include delays, deficiencies in performance, and complete failure to perform. The type of breach has an impact on the rights you have as a consumer.
When are you entitled to compensation?
As a general rule, you are entitled to compensation if you have suffered a financial loss as a result of the breach of contract. This applies whether the agreement is written or oral, as long as you can document that an agreement exists.
Three basic conditions must be met:
1. There must be a loss
You must have suffered a financial loss – for example, expenses you have incurred because of the error, or lost income. The loss must be tangible and can be documented. It is not enough that you feel disappointed or annoyed.
2. There must be a connection between the loss and the breach of contract
The loss you have suffered must be a direct result of the breach of contract. If the loss had occurred anyway, you are usually not entitled to compensation.
3. The other party must be responsible
In many cases, it is sufficient that there is so-called "control liability" - that is, the other party is liable unless they can prove that the breach was due to something beyond their control, which they could not foresee or prevent.
What can you claim in compensation?
The compensation must cover the financial loss you have suffered. This may include:
- Direct losses: For example, expenses to correct the error, buy a new product, or have the work done again.
- Indirect losses: For example, lost income or additional expenses due to delays or errors.
In consumer relations – that is, when you as a private individual buys from a business – there are often separate rules that give you special protection, such as the Consumer Purchase Act and the Craftsmen Services Act.
How to proceed
If you want to claim compensation, you should do the following:
- Collect documentation: Receipts, contract, emails, messages – anything that shows what was agreed upon and what went wrong.
- Give written notice to the other party: Explain what the problem is, what you are demanding, and why.
- Set a deadline for feedback: For example, 14 days.
- Consider further steps: If you are not successful, you can take the case to the Conciliation Council, the Consumer Authority, the Consumer Complaints Committee or, ultimately, the court.
Obsolescence – don't wait too long
A claim for compensation is generally time-barred three years after you became or should have become aware of the circumstances that give rise to the claim. This means that you should act quickly to secure your rights.
Also consider price discounts
If the conditions for compensation are not met, it may be worth considering whether you may be entitled to a price reduction instead. The procedure is quite similar, but the conditions in the law are not identical. This means that you may be entitled to a price reduction even if you are not entitled to compensation, and vice versa.
When should you seek help?
Many cases can be resolved through good communication. However, if the other party refuses to acknowledge liability, it may be worthwhile to seek legal help. Remember that many homeowners insurance policies cover legal assistance in disputes – check your insurance. If you are unsure and would like an assessment of your case, it is often worth having a non-binding conversation with a lawyer with experience in contract law and tort law.