# Notice of default

Source: https://contracko.com/glossary/notice-of-default

# Notice of default

A formal demand giving a defaulting party a final period to perform before falling into 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.

### How Contracko helps

Contracko tracks every contract obligation and its due date, so a missed performance triggers a visible alert before the default becomes a dispute. When a notice of default is sent, storing it in the same contract record alongside the obligation it relates to means the dated evidence trail is already in place if the matter escalates to litigation.

## Legal references

- [BW 6:82 Dutch Civil Code: default and notice of default Dutch law](https://wetten.overheid.nl/BWBR0005289)
- [BW 6:83 Dutch Civil Code: default without notice Dutch law](https://wetten.overheid.nl/BWBR0005289)

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.

## Relevant for

[Logistics & Distribution](https://contracko.com/industries/logistics)[Manufacturing](https://contracko.com/industries/manufacturing)[Construction](https://contracko.com/industries/construction-industry)[Financial Services](https://contracko.com/industries/financial-services)

## Related clauses

- [Termination for Cause Clause](https://contracko.com/clause-library/termination-for-cause)
- [Payment Terms Clause](https://contracko.com/clause-library/payment-terms)

## Related terms

- [Breach of contract](https://contracko.com/glossary/breach-of-contract)
- [Rescission](https://contracko.com/glossary/rescission)
- [Payment default](https://contracko.com/glossary/payment-default)
- [Statutory interest](https://contracko.com/glossary/statutory-interest)

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## Frequently asked questions

Common questions about this term.

- **Q:** Is a notice of default always required before claiming damages?
  **A:** Generally yes, but article 6:83 BW provides exceptions: a fixed performance date that has passed, a debtor's express announcement that it will not perform, and certain other cases create default automatically without a notice.

- **Q:** What is the minimum cure period that must be given?
  **A:** Dutch law requires a "reasonable" period, which is assessed case by case. A very short period (for example 24 hours for a complex delivery) is unlikely to create valid default; a period of one to two weeks is commonly used for straightforward obligations.

- **Q:** Can a notice of default be sent by email?
  **A:** Yes, email is generally accepted as a valid written communication for a notice of default, but you should retain proof of delivery. Check the contract's notices clause: it may specify a required method such as registered post or bailiff service for formal notices.

- **Q:** Does a notice of default suspend the limitation period for the underlying claim?
  **A:** A written demand (aanmaning) interrupts the limitation period under article 3:317 BW. However, the interruption only lasts for six months unless further steps are taken; to preserve the claim indefinitely, proceedings must be commenced or a written acknowledgment of the debt obtained.

- **Q:** What happens if the other party cures the default within the notice period?
  **A:** If the party performs within the cure period, default does not arise and the creditor generally cannot claim damages for delay, though they may still claim compensation for losses suffered up to the cure. Any interest accrued on a money obligation up to the cure date is typically still payable.

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