Compensation for breach of contract: What can you claim?

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Published: Aug 25, 2025

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:

  1. Collect documentation: Receipts, contract, emails, messages – anything that shows what was agreed upon and what went wrong.
  2. Give written notice to the other party: Explain what the problem is, what you are demanding, and why.
  3. Set a deadline for feedback: For example, 14 days.
  4. 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.

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Compensation Claims - A Complete Guide
If you have suffered injury or financial loss as a result of the actions of others, you may be entitled to compensation. This guide provides an overview of what a compensation claim is, what conditions must be met, and how to proceed to claim compensation.

What does a compensation claim entail?

A damages claim is a claim for financial compensation for damage or loss caused by another party. The goal is to restore you to the financial situation you were in before the damage occurred.

When can you claim compensation?

To be entitled to compensation, three basic conditions must be met:

  • Documented financial loss – For example, expenses, lost income, or impairment.
  • Liability of the person who caused the damage – The person or business must be able to be held legally liable, typically due to negligence or breach of duty.
  • Causation – There must be a clear connection between the act and the loss.

Different types of compensation

Compensation is divided into several categories:

  • Financial compensation : Covers specific losses resulting from the incident.
  • Compensation : Given in the event of permanent physical or mental injury.
  • Reparation : Awarded in cases of gross injustice, such as violence or harassment.

How to proceed

  1. Document the loss: Gather everything that supports your claim – receipts, medical certificates, photos, and other relevant information.
  2. Identify the responsible party: Find out who is responsible for the damage and whether they are covered by insurance.
  3. Submit a claim: Formulate a clear written claim describing what has happened, what you are demanding, and why.
  4. Consider legal assistance: A lawyer with expertise in tort law can be a good support, especially in larger or complex cases.

Remember deadlines

A claim for damages must normally be made within three years of the date you became aware of the damage and the person responsible. Waiting too long may cause the claim to become time-barred, so act quickly. A claim can also be lost as a result of inaction.

Free legal aid and coverage of expenses

If you have a low income or limited resources, you may be entitled to free legal aid from the state. This applies, among other things, to personal injuries and compensation for victims of violence, and covers legal assistance in whole or in part. Contact a lawyer or the county governor for an assessment.

In addition, many insurance policies, such as home and car insurance, include legal aid coverage. This means that legal fees in disputes may be covered, for a deductible. Check the terms of your insurance contract or ask the insurance company directly.

Do you need legal assistance?

The rules for damages claims and statutes of limitations can be complicated, especially when it is unclear when the statute of limitations begins to run, or if it has been interrupted. If you are unsure whether your claim is still valid, it may be wise to get a legal opinion.

At Insa advokater you will receive assistance from an experienced tort lawyer who has in-depth knowledge of the law and what is required to safeguard your rights. An early assessment can be crucial to the outcome of your case.

Limitation period for compensation claims: What you should know
When you have a claim for compensation – whether following a personal injury, breach of contract or financial loss – it is important to act within certain time limits. If you wait too long, your claim may be time-barred and you will lose the right to have it fulfilled.

What is obsolescence?

Statute of limitations means that a claim can no longer be asserted if it is not reported within certain deadlines. For compensation claims, this applies to both:

  • In the event of a breach of contract (e.g. inadequate craftsmanship)
  • In the event of damage outside the contract (e.g. personal injury or financial loss)

A claim may be time-barred either because too much time has passed from the time the claim could have been met until you actually demand payment, or because you cannot invoke any additional deadlines.

Why do compensation claims become time-barred?

Statutes of limitations serve an important function in the legal system. They are designed to:

  • Protect the responsible party from very old and unresolved claims
  • Ensure that disputes are resolved while evidence and documentation are still available
  • Create predictability for both the injured party and the person who may have to pay

In short: the older a claim is, the more difficult it is to prove what actually happened. That's why there are absolute deadlines.

When does the statute of limitations start?

Main rule - 3 years

The general limitation period is 3 years . This follows from Section 2 of the Limitation Act. When the period begins to run depends on the type of claim in question.

Claims for damages in the event of breach of contract

In the event of a breach of contract, the limitation period runs from the time the breach occurred – normally upon takeover or delivery , not from when you discover the fault.

  • Main rule**: 3 years** from the breach (purchase/delivery/takeover)
  • Exception: Possible extension of 1 year, calculated from when you discovered or should have discovered the error.

Example: You have plumbing work done in 2018, but discover in February 2023 that a mistake has been made. The limitation period still ran from 2018, and when the mistake was discovered, more than three years have passed and the limitation period has therefore expired. If you could not have discovered this earlier, you have the opportunity to get an additional period of one year – until February 2024 – to file a claim, even though more than three years have passed since the work was performed.

Claims for damages outside of contract

If you claim compensation from a party with whom you are not in a contractual relationship, the time limit runs from the date you received or should have received the necessary knowledge of both the damage and the person responsible.

  • Rule of thumb: 3 years from actual knowledge
  • Exception: Absolute maximum period of 20 years from the time of damage

Example: You injure yourself after falling on ice outside a store in 2022, but the doctor only proves permanent damage in 2024. The statute of limitations starts in 2024.

How can you stop obsolescence?

Prescription can be interrupted in the following two main ways:

  1. Acknowledgement – ​​the responsible party acknowledges the claim, e.g. by making a partial payment
  2. Legal action – you send a settlement complaint, summons or complaint to a body with authority
  3. Agreement – ​​the person responsible approves that the limitation period is extended through agreement

When the statute of limitations is interrupted, the original statute of limitations is interrupted and reset . This means that a new statute of limitations – usually three years – begins from the time the interruption occurred.

How to secure your rights

  • Keep track of the dates – Note when the damage occurred and when you discovered it.
  • Document everything – Collect receipts, emails, agreements, and other relevant communications.
  • Seek help early – Talk to a lawyer if you are unsure about which deadlines apply.

Do you need legal assistance?

The statute of limitations can be challenging to navigate, especially when there is uncertainty about when the statute of limitations starts or whether it has been interrupted. If you are in doubt about whether your claim can still be enforced, it may be a good idea to get a legal opinion.

At Insa lawyers, you will receive assistance from an experienced lawyer in tort law who knows the regulations and what is needed to secure your rights.

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