Contract law, money claims law and tort law

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.

‍

When purchasing expensive items such as a car, boat, electronics or furniture, errors and defects can quickly lead to major financial losses. If you experience problems that are not resolved, or if you encounter resistance from the seller, you should keep these things in mind.

‍

When does the Consumer Purchase Act apply?

The Consumer Purchase Act applies when you, as a private individual, buy a product from a trader – either in a store or online. The law applies regardless of whether the product is new or used, and whether it was purchased in Norway or from a Norwegian online store. However, it does not apply to purchases between two private individuals; in that case, the Purchase Act applies, and you do not have as strong a protection

‍

What is considered a deficiency?

A product has a defect when it does not correspond to what you were told, either in terms of properties, function or quality. It can also be a matter of incorrect marketing or missing information. The Consumer Purchase Act sets clear requirements for what you as a buyer can expect, and gives you protection against such defects.

‍

What can you claim?

If the item you have purchased turns out to be defective, you have rights that are often worth exercising. In the first instance, the seller has the right to attempt to correct the defect (section 29 of the Norwegian Consumer Code). If this is not possible, you can:

• have the item exchanged for a new one (redelivery)
• demand a price reduction (fkjl. §31)
• cancel the purchase if the defect is significant (fkjl. § 32)
• claim compensation for financial loss (FKJL § 33)

Cancellation is primarily applicable if rectification or replacement is not successful. Cancellation can therefore be referred to as a secondary breach of contract effect. If the seller proves that the defect is insignificant, the consumer cannot demand cancellation. Typical examples of when cancellation may be applicable are extensive engine problems on a newly purchased car, or repeated defects that make it unreasonable to wait for several repair attempts.

‍

Complaints – deadlines and documentation

To make a claim, you must file a complaint within a reasonable time – normally no later than two months after you discovered the defect. The absolute complaint period is two years, but for goods that are intended to last longer, such as white goods, electronics or vehicles, it can be up to five years.

‍

The complaint should always be in writing and contain a clear description of the defect and what claim you are making. It is not a requirement by law that the complaint be in writing, but you can more easily prove that it was sent within a reasonable time if you have written proof. Feel free to attach pictures, receipts and any documentation from professionals.

‍

Do you need legal assistance?

Many people are not aware that the legal aid coverage in your home insurance can often cover a large part of your legal fees. The lawyer can help you assess whether there is a legal defect, advise you on further steps and file a claim against the seller. This is particularly useful if you want to cancel the purchase or claim compensation.

‍

If you are unsure whether you have a case, or need help filing a complaint, contact us for a free meeting.

Hiring a tradesman for renovation or maintenance can save you time. But what do you do when the result doesn't live up to your expectations, whether it's delays, poorly executed work, or disagreements about completion? In this guide, we try to give you an overview of your rights and how to best proceed if your tradesman doesn't deliver as agreed.

‍

Your rights as a consumer

The relationship between you as a consumer and the craftsman is regulated by the Craftsman Services Act . The law is designed to protect you and is intended to ensure, among other things:

• Professional execution and deadlines: The work must be done professionally and within the agreed time. If the craftsman is late, you have various rights that you can assert.
• Clear information: You should receive clear and sufficient information about everything from the scope of the work to costs. The craftsman's obligation to you is referred to as a duty of care (Article 5 of the Code of Civil Procedure), and the craftsman even has a duty to discourage you from entering into the agreement if the service will not be of reasonable benefit to you (Article 7 of the Code of Civil Procedure).
• Compensation for defects: In the event of defects, you are entitled to correction, a price reduction, or in serious cases – to terminate the agreement with the craftsman.

‍

What do you do if you have poor work or deficiencies?

If you discover errors, deficiencies, or that the craftsman has performed poor work, quick and systematic action is crucial:

‍

1. Document everything

Gather evidence. Take detailed photos and videos of the errors, and note when you discovered them. Keep all relevant documentation such as contracts, quotes, invoices and written communications (email, SMS). Good documentation can strengthen your case, and make it easier to be heard that you have the right on your side.

‍

2. Contact the craftsman in writing

Send a clear and written complaint as soon as possible. Describe exactly what you are dissatisfied with and what errors you have found. Set a reasonable deadline for correction or completion. Good communication early on can resolve many disputes. This is referred to as a complaint, and is crucial for you to keep your claim intact and be able to pursue it further if you cannot reach an agreement.

‍

3. Know your requirements

If the craftsman does not follow up, the Craftsman Services Act gives you several options:

• Withhold payment: You can withhold an amount that corresponds to the cost of correcting the defect (in accordance with Section 23). This is an effective means of pressure, but be careful to document why you are doing it. You should also not withhold a larger amount than is necessary to secure your claim. If only a small part of the agreement remains, you cannot withhold the entire amount without risking having to pay late payment interest on the rest of the purchase price.
• Claim for correction: The craftsman has both the right and the obligation to correct the error, at no extra cost to you. The correction must be made within a reasonable time and without causing you significant inconvenience (section 24 of the Act).
• Price reduction: If correction is not made, you can demand a price reduction corresponding to the reduction in value caused by the defect, or what it costs to have it corrected by others (section 25).
• Termination of the contract: In serious cases, where the defect is significant, you can terminate the contract with the craftsman. This means that the contract is cancelled, and you can demand a refund for what you have paid (minus any compensation for usable parts of the work) (Article 26 of the Danish Labour Code).
• Compensation: If you have suffered a direct financial loss as a result of the craftsman's error or delay, you can claim compensation. This may include expenses for a new craftsman or alternative housing (section 28).

‍

What if you can't agree? Seek professional help

If you cannot reach an agreement, you can contact the Consumer Council, the Consumer Authority or the Conciliation Council. If you have legal aid insurance through your home or contents insurance, it can often cover part of the legal fees.

‍

When should you contact a lawyer?

If the case is complex, the claim is large, or you feel unsure about the way forward, it may be a good idea to contact a lawyer. We can assist with:

• Assess the matter objectively.
• Formulate legally correct requirements.
• Negotiate on your behalf.
• Represent you in a dispute.

If you are unsure whether you have a case, or need help filing a complaint, contact us for a free meeting.

‍