Delay

A delay takes place, when the deadline for performance has expired but the performance has not been made. Delay is in question as soon as the performance has not been carried out in the specified time and place, without the other party having to demand the other to perform their 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 fulfill their obligations within the specified time. In that case, the other party may have a right to rescind the agreement if the delay is of essential importance to them. If the delayed party gives security for fulfillment of its performances, the other party does not usually have any right to rescind the agreement. In such circumstances, it is not always clear how the loss resulting from the delay is to be compensated.

A delay of payment happens when a party obligated to make a payment neglects to do so in time. A party may also be bound by additional responsibilities outlined in the agreement. For instance, in a commercial transaction, a buyer is considered in default if they fail to fulfill their obligation to accept delivery of goods, such as by neglecting to arrange for their receipt.