Guide

Contract law in Europe

Non-performance and remedies in European contract law

Chapter seven of the Principles of European Contract Law explains how a contract is performed - ie how both sides fulfil their part of the contract. For more details, seeĀ performance of obligations set out in a European contract.

The first option is for the non-performing side to be given the chance to complete their part of the contract. For instance, if a product does not work as specified, the supplier is given the chance to put the problem right. Performance is then said to be achieved, although the customer in such a case might have the right to claim a reduction in price.

Remedies for non-performance in European contract law

If non-performance is fundamental - in other words, if one side is simply not going to fulfil some or all of their part of the contract - there are various specific remedies for the injured party. These include:

  • damages and/or interest on the loss caused
  • a reduction in the price of the product or service
  • termination of the contract

In each case, there are clauses outlining what the parties to the contract can do, such as recovering property which has not been paid for, and how each side should give notice to the other for non-performance.