Legislation provides that the buyer give the seller a reasonable extension to the delivery time in case of delayed delivery. If the item is still not delivered, the buyer may demand cancellation of the sale. The purchase price need not be paid until the product has been delivered. Legislation does not provide for a right to demand a price reduction as compensation for delayed delivery. Nevertheless, consumers may want to negotiate for one as businesses often prefer to compensate for delays by granting a price reduction rather than cancelling the entire sale.
According to the legislation, the consumer is entitled to cancel a purchase after the extension to the delivery time expires and is further entitled to compensatory damages for any costs incurred from handling the matter. In certain special cases the consumer may be entitled to compensatory damages for other costs as well.
If the purchase is for construction materials, for example kitchen cabinets, consumers should check the contract for terms specifying standard compensation for delayed delivery. If the purchase was made using contract terms approved by the Consumer Ombudsman, the contract will specify a standard amount of compensation. If the actual costs incurred from the delay exceed the standard amount of compensation, it is possible to demand compensation for actual costs. Such costs could be, for example, fees paid to a cabinet fitter which were wasted when the cabinets failed to be delivered as promised.
These principles governing compensation also apply to various service performances such as product repairs and manufacturing. The consumer is entitled to demand that the delayed service performance, such as repairs for a home appliance, is completed within a specified new time limit. If the work performance still remains unfinished either completely or in part, the consumer may demand that the contract be annulled. The cost of the delayed work performed during the period of delay does not need to be paid. The price is paid when work is completed. However, if the contract is annulled on the grounds of delayed work performance, the consumer is liable to pay for the work done that was of use to the consumer. In other words, the contract can generally only be annulled for the portion of the work performance that was not completed.