Delay
A delay takes place, when the time for performance has expired but the performance has not yet taken place. The delay happens as soon as the performance has not been carried out in the specified time and place and the other party does not have to demand the other party to perform its obligations. In other words, the mandatory notification of defects in respect of delays arises only once the performance is already delayed in real time.
Sometimes it is already evident in advance that one of the parties will be unable to perform its obligations within the specified time. Then the other party may have right to rescind the agreement, if the delay would be of essential importance to him/her. If the delaying party gives a security for fulfillment of its performances, the other party has not, however, usually any right to rescind the agreement. In such circumstances, it is not always clear how loss resulting from the delay is to be compensated.
A party having a duty to make a payment may sometimes neglect to pay in time. In these circumstances it is delay in payment. The party may also have other duties which he or she should fulfill in accordance with the agreement. In connection with a trade, for example, a buyer is in delay if he or she has neglected his/her duty to take a delivery of goods e.g. by not calling for goods.