Suspension of payment under Dutch law
Under Dutch law, a valid invocation of payment suspension requires an enforceable counterclaim, sufficient connection between both obligations, and proportionality between the suspended amount and the breach. The suspension must comply with Article 6:262 Dutch Civil Code and must not violate reasonableness and fairness principles. Suspension of payment serves as a powerful legal instrument in […]
When Can You Terminate an Assignment under Dutch law?
As a principal, you may terminate an assignment agreement at any time without stating reasons according to Article 7:408 paragraph 1 Dutch Civil Code. This applies to both fixed-term and indefinite-term assignments, although notice periods and compensation obligations must be considered. The authority to terminate an assignment differs significantly between principals and contractors. Moreover, different […]
Unauthorized Conclusion of a Contract under Dutch law
Unauthorized representation in contract conclusion means that a person acts on behalf of a legal entity without the required power of attorney or statutory authority. The represented party is in principle not bound to this agreement, unless the appearance of representative authority can be demonstrated according to Article 3:61 paragraph 2 of the Dutch Civil […]
What is a Third-Party Beneficiary Clause under Dutch law?
A third-party beneficiary clause under Dutch law is a contractual provision where two parties agree that a third person gains an independent right to claim performance. This third party can directly demand performance from one of the contracting parties without having been involved in the original agreement. The legal foundation follows from Article 6:253 of […]
How to terminate a Dutch commercial contract during the term?
Under Dutch law, Terminating commercial contracts during their term is possible through several legal routes: notice of termination, dissolution for breach, cancellation due to defects of consent, or mutual agreement. Available options depend on contractual provisions, statutory rules, and the nature of the agreement. Business owners must follow specific procedures to avoid damage claims. Ending […]