Dekkingskoop

Covering purchase

A covering purchase is a substitute purchase made by a buyer when the original seller fails to perform its delivery obligation.

In Dutch law, a cover purchase is the acquisition of equivalent goods from a third party following the seller’s default. This mechanism is provided for in Article 7:36 of the Dutch Civil Code and enables the buyer to mitigate its loss.

The buyer may recover the reasonable additional costs of the cover purchase from the original seller as damages, provided the purchase is made within reasonable limits. It prevents the buyer from remaining without the goods for an unnecessarily prolonged period.

In practice, cover purchases are frequently employed in commercial sales contracts where delivery problems arise, with the buyer duly documenting the replacement transaction in order to substantiate a claim for compensation.

“Following the supplier’s non-performance, the buyer effected a cover purchase from a third party in order to obtain the goods in a timely manner nonetheless.”

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