Contract law, money claims law and tort law

Understanding the statute of limitations for monetary claims is essential for both the creditor (claimant) and the debtor (debtor). Statute of limitations means that a claim lapses after a certain period of time, which means that the creditor loses the right to collect the monetary claim. This is regulated in the Statute of Limitations Act.

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What is obsolescence?

Statute of limitations means that the right to collect a debt disappears after a certain period of time. This is stipulated by law and exists to ensure that claims cannot be collected many years after they arose.

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When a claim becomes statute-barred, it means that the person who owes money no longer has a legal obligation to pay, even if the debt was originally valid.

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The general limitation period

The general statute of limitations for monetary claims is 3 years . When the three-year statute of limitations applies, it means that if someone owes you money, you must claim it back within three years, otherwise you lose the right to get it back. As a general principle, the statute of limitations starts to run when the claim becomes due.

Example: If you lend money to a friend on January 1, 2025, and you have not agreed on a specific repayment date, your claim will become statute-barred on January 1, 2028.

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Exceptions to the general deadline

Some types of claims have longer deadlines. For example:

• Claims with a written agreement (debt) which typically include bank loans – If you have a written agreement for the loan, the statute of limitations may be 10 years .
• Compensation claims – If you claim compensation for an injury, there may be special rules that provide a longer period, up to 20 years in certain cases.

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What if you didn't know about the requirement?

In cases where one has not been aware of the requirement, an additional period of one year may be granted from the day one gained or should have gained such knowledge, cf. the Limitation Act, Section 10, No. 1. For contractual obligations, there is an absolute limit of 13 years from the due date, which includes the general period of three years plus a possible extension of ten years.

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Interruption of the limitation period

The limitation period can be interrupted in several ways. The most common method is to take legal action against the debtor, for example by filing a settlement complaint or summons. The period can also be interrupted if the debtor acknowledges the claim, either by paying part of the amount owed or otherwise acknowledging the debt.

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Absolute limitation periods

For claims for damages outside of a contract, an absolute limitation period of 20 years applies from the date on which the damaging act or the basis for liability ceased, cf. the Limitation Act, Section 9, No. 2. This means that even if the creditor was not aware of the damage or the person responsible, the claim cannot be brought after 20 years. There are exceptions for personal injuries under certain circumstances, where no absolute limitation period applies.

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How to avoid the claim becoming time-barred?

If you want to make sure you don't lose your right to your money, you can interrupt the statute of limitations. This can be done in two ways:

1. Collect the money in an official way
   • Send a payment reminder or dunning letter
   • Hire a debt collection agency
   • Take the case to the conciliation board or court
2. That the debtor confirms that he or she owes you money
   • Pays part of the claim
   • Written or verbal confirmation that the debt still exists

If the limitation period is interrupted, a new period starts to run from that point.

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It is a good idea to know the statute of limitations

Being aware of the statute of limitations is crucial for both creditors and debtors. For the creditor, it ensures that necessary steps are taken to collect claims before they become time-barred. For the debtor, it can mean avoiding paying claims that are no longer valid.

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We understand that the rules surrounding statutes of limitations can be complex. If you are unsure about what applies to your situation, it may be a good idea to speak to a lawyer experienced in monetary claims law .

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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.

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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.

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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:

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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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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.

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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

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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.

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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.

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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.

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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.

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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.

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