What is termination for convenience (opzegging) under Dutch law?

Dutch term: Opzegging | Legal basis: Case law + specific statutes

Termination for convenience (opzegging) under Dutch law is the ending of a contract for the future without requiring breach by the other party. For indefinite-term contracts, opzegging is generally possible but subject to a reasonable notice period. For fixed-term contracts, opzegging is only possible if the contract expressly provides for it.

Dutch Supreme Court case law on long-term continuing commercial relationships (duurovereenkomsten) requires that the notice period be reasonable in the circumstances, taking into account the duration of the relationship, the dependency of the terminated party, the investments made, and industry custom. In some cases, compensation for reliance investments may also be required alongside the reasonable notice period.

Why it matters for international businesses

For suppliers terminating a long-running distribution or agency relationship, the reasonable notice period requirement often produces longer and more expensive exits than expected. Taking legal advice before serving notice is essential.