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Whether a customer may cancel and what that costs depends primarily on your agreements — usually in the general terms and conditions. In the case of a purchase agreement, there is no automatic right of cancellation (except for the 14-day cooling-off period for distance selling for consumers). In the case of an assignment (service), a consumer may always cancel, but you may charge reasonable compensation for costs incurred and lost profits. For business customers, you are free to arrange this as you see fit.
A customer who cancels an ordered service or product is annoying, especially if you have already incurred costs or reserved time. Can a customer simply cancel, and are you allowed to charge cancellation fees? That depends on the agreements and on the law.
General terms and conditions prevail
Your cancellation terms are paramount: you can regulate when, in which cases, and how cancellations are permitted, and what cancellation fees apply — or whether cancellation is prohibited altogether. This is usually stated in the general terms and conditions. However, there are limits: the terms must be reasonable, as unreasonably burdensome conditions are prohibited, and you may not deviate from certain statutory rules. Drafting a cancellation fee clause requires careful attention — leave that to a lawyer.
Cancellation of a purchase agreement
If the parties agree on price and product, the purchase is concluded and, in principle, cannot be withdrawn — there is no general right to cancel an order. You may, however, include a cancellation policy in your terms and conditions, with reasonable costs. Exception: in the case of a distance purchase, a consumer has a 14-day right of withdrawal (with some exceptions) — free of charge and without giving a reason. The ACM takes strict action. Business customers cannot invoke this.
Cancellation of a contract for services
Under the law, a contract for services can always be terminated. You may not deviate from this for consumers, but you may for business clients. Therefore, a consumer may always cancel an ordered service, and you may not send the full invoice: cancellations are part of your business risk. However, you may charge reasonable compensation for losses incurred and lost profits.
You may not pass on costs not yet incurred (materials you have not yet purchased, personnel you have not deployed). However, you may pass on costs already incurred, such as custom-made products that you can no longer resell, as well as lost profit (the margin on what you have already done). These rules do not apply to business clients, and you are free to make agreements in advance.
Force majeure and other agreements
Good terms and conditions prevent a lot of hassle, although not all agreements are valid with regard to consumers. Nevertheless, force majeure can throw a spanner in the works: if the government prohibits events, for example, a customer can invoke this to cancel — that right of rescission follows from the law. With regard to business customers, the force majeure regulations are of a regulatory nature, so you can determine for yourself what constitutes force majeure and what the consequences are in a force majeure clause
Frequently Asked Questions
Can a customer simply cancel?
In principle, not for a purchase (except for the 14-day cooling-off period for distance selling). A consumer may always cancel an order or service; however, you may charge reasonable compensation.
What cancellation fees may I charge?
For a consumer assignment, reasonable compensation for costs already incurred and lost profits — not for costs you have not yet incurred. With business clients, you are free to agree on this.
What if the customer invokes force majeure?
In the event of genuine force majeure (such as a government ban), the client may terminate the contract. Therefore, for business clients, establish a force majeure clause that defines what constitutes force majeure and what the consequences are.
Protection against cancellations
The legal experts at MKB Juristen draft a comprehensive cancellation and force majeure policy, or review your terms and conditions via the ContractCheck. View our expertise in contract law or schedule an intake meeting .
