Law of obligations modernising act
The reform of the law of obligations is one of the most extensive amendments of the Civil Code since it has existed, hence for more than 100 years. The requirement for amendment and improvement of the legal situation in wide parts of the obligations law, which were recognized long ago, was implemented by way of reform.
The need for amendment was seen in particular for the following areas:
- Law of defective performance:
Here ‘central elements of a rule’ have been created to sum up all defective performances, that is default, positive breach of an obligation and subsequent impossibility of performance, thus adjusting the previously very unclear picture of the Act. - Integration of the consumer protection laws into the Civil Code:
In the course of time, an increasing number of supplementary statutes concerning the Civil Code have developed, which have now been systematically integrated into the Civil Code as central provisions. - Law on contracts for work and services, and law on sales:
Far-reaching amendments in the law on warranty have occurred in this area that have led, e.g. to the extension of the warranty period from previously 6 months to 2 years at present. - Law on limitation: the regular statutory limitation has been reduced from 30 to 3 years.
Important exception: it is still 30 years for debts established with binding legal effect.
At the same time, the commencement of limitation period has been tied to the arising of the claim as well as to knowing or ‘having to know’ the circumstances justifying the claim. If the requirements are fulfilled, the limitation period commences at the end of the year.