What is breach of contract and what can I do?

The short answer

Breach of contract is the non-performance of contractual obligations. You then have three main options: demand performance (force the other party to still perform), terminate the agreement, or claim damages. You can often also combine these options. Which option is best depends on your situation and what you would prefer to achieve.

What does the law say?

The law regulates breach of contract in the Dutch Civil Code. Section 6:74 Dutch Civil Code states that there is a breach of contract if someone does not fulfill their obligation, unless this is not attributable to them. The law gives you various legal remedies to act against this. You usually have to first put the counterparty in default before you can take further steps.

What should you pay attention to?

Pay close attention to whether the breach is actually attributable to the other party. Sometimes someone cannot fulfill an obligation due to force majeure or other circumstances. Document everything well and first put the counterparty in default in writing. Also look at what the contract exactly says about what should happen in case of breach of contract.

Example from practice

You order a new kitchen that should be delivered on March 1, but the supplier only delivers on March 15. Due to the delay, you have to rent a temporary kitchen for longer. This is a breach of contract because the supplier performed too late. You can claim the extra rental costs as damages. If the kitchen is ultimately not delivered at all, you can terminate the contract and reclaim your advance payment.

What can you do?

Always start by putting the counterparty in default. Give a reasonable deadline to still perform. If that doesn't help, choose which legal remedy best fits your situation.