Verzuim

Default occurs when a party fails to perform its contractual or statutory obligations in a timely manner. Under Dutch law, default is generally established by means of a notice of default, whereby the creditor formally requires the debtor to perform its obligations.

This is relevant because default opens access to legal remedies such as termination of the contract, damages or specific performance. Without default, the creditor is in many cases unable to claim these remedies.

In practice, lawyers regularly advise clients on the proper manner of serving a notice of default in order to establish default effectively and thereby strengthen their position in disputes.