Dutch contract law is based on the principle that contracts concluded must be fulfilled. If you are unable to fulfil your obligations, this gives your business partner a number of rights, for example, to claim performance or to dissolve the contract for breach of contract and to claim damages.
A notice of default is a written reminder sent to you by your business partner giving you one last chance to fulfil your obligations within a specified period.
The notice of default is often followed by dissolution of the contract and a claim for damages.
If you receive a notice of default, do not throw it away or in a drawer, but contact us immediately so that we can let you know how you can and should react in this specific case. Please note! If you let the deadline slip by, you are in default and your counterparty may dissolve the contract and claim damages.
What does dissolution mean?
Dissolution is a legal remedy that ensures that the contract between parties ends. A contract can be dissolved if you fail to comply with the terms of the contract (e.g. failure to deliver services/products).
Please contact us immediately if you have received a notice of default – usually the response time is only a few days!