If the debtor fails to perform in time, the debtor is in default as of the deadline set by the creditor. The function of a notice of default is to give the debtor a final term for performance and to determine the deadline until which performance is still possible without being in default.If no time limit has been set for performance, the default will occur if the debtor is given notice of default in writing and is given a reasonable remedy period, and the debtor fails to perform within this period (article 6:82 paragraph 1 Dutch Civil Code).The Supreme Court used this case to summarise the rules on default and notice of default:

What are the rules on default and notice of default?

The discussion focused on whether the main contractor should have given the sub-contractor a longer remedy period when issuing the notice of default. The sub-contractor argued that the main contractor did not have this right because the sub-contractor was not yet in default. The main issue in dispute was whether, after a period of discussion and correspondence between the main contractor and the sub-contractor about the time frame and quality of the work of the sub-contractor, a main contractor had the right to terminate the agreement with the sub-contractor. The judgement clarified the remedy period that must be given to the debtor in the notice of default in order for the default to have effect and the contract to be capable of termination (ontbinding). On 11 October 2019, the Supreme Court in the Netherlands issued a judgement setting out the rules on default (verzuim) and notice of default (ingebrekestelling).

Notice of default example