Ongedaanmakingsverbintenis
Obligation to make restitution
An obligation to make restitution is the statutory duty to reverse performances rendered pursuant to a contract that is annulled or terminated, and to restore the status quo ante.
The restitutionary obligation arises by operation of law when a contract is annulled or rescinded. The parties are then required to reverse their respective performances, for example by repaying sums received or returning goods delivered.
This obligation is governed by Book 6 of the Dutch Civil Code and serves to prevent a party from retaining an unjustified enrichment after the legal basis has ceased to exist. In practice, it frequently results in mutual restitution and may give rise to proceedings concerning the extent of the performances to be returned.
The obligation is relevant both to rescission for non-performance and to annulment on grounds of mistake, fraud or other defects of consent.
“Following the annulment of the purchase agreement, both parties became subject to an obligation to make restitution, requiring the seller to repay the purchase price and the buyer to return the car.”
Related terms
Need legal advice?
Schedule a free consultation with one of our specialists