Verzug (EN)

Definition

Verzug refers to the situation where a contractual party fails to fulfill its contractual obligations on time. A distinction is made between debtor default (fault of the debtor) and acceptance default (fault of the creditor). In case of default, default interest and other legal consequences may arise, which should be regulated in the contract terms.

Types of Default

flowchart TD     A[Default] --> B[Debtor Default]     A --> C[Acceptance Default]          B --> D[Performance not provided on time]     B --> E[Unforeseen performance obstacles]          C --> F[Refusal to accept performance]     C --> G[Delay in acceptance]          D --> H[Default interest]     D --> I[Mandatory reminder]     D --> J[Termination]          F --> K[Compensation obligation]     F --> L[Reimbursement of expenses] 

Legal Consequences

• Default interest: The creditor can demand interest for the period of default
• Reminder obligation: The creditor must place the debtor in default, unless this has already occurred
• Compensation: In case of intent or negligence, the creditor can demand compensation
• Termination: In case of significant or continued breach of contract, the contract can be terminated