Notice of default

Definition

A notice of default is a written demand requiring a party that has failed to perform to do so within a reasonable final period, on pain of being in default (verzuim). Under articles 6:81 to 6:83 BW, default is a precondition for claiming damages or rescinding the contract, though in certain cases (such as a fixed performance date) it arises automatically without notice. The notice also marks the moment from which delay damages and statutory interest run.

Example

A client sends its supplier a notice of default setting a final two-week deadline to deliver before it will rescind the contract.

Why this is a business risk

Failing to send a notice of default when required by law can invalidate your entire claim for damages, even if the other party clearly failed to perform. The notice triggers the clock for statutory interest and the limitation period for consequential claims, so delay in sending it can reduce recoverable interest. Businesses that manage disputes informally without a formal written notice often lose procedural leverage that is very difficult to recover later.

How to manage it

• Send the notice in writing and by a method that creates a reliable delivery record, such as registered post or email with a read receipt; bailiff service is strongest.
• Set a reasonable cure period: what is "reasonable" depends on the nature of the obligation; a purely monetary default typically requires a shorter period than a complex delivery.
• State precisely what performance is required and by when; a vague notice may not create valid default and can be challenged in proceedings.
• Track the cure deadline in your calendar so you can take the next step, whether that is dissolving the contract or commencing proceedings, without further delay.

Legal references

• BW 6:82 Dutch Civil Code: default and notice of default Dutch law
• BW 6:83 Dutch Civil Code: default without notice Dutch law

Unless marked otherwise, references are to Dutch law (Burgerlijk Wetboek, the Dutch Civil Code); EU instruments such as the GDPR apply across the EU. This is general information, not legal advice. Other jurisdictions treat these concepts differently. Verify the current text and your situation with a qualified lawyer.