When a developer suffers loss because works have been carried out defectively, the following question regularly comes up: may the developer, in addition to claiming damages, also refuse to pay (part of) the contract price? The Belgian Court of Cassation recently examined this point in a ruling of November 8, 2024. The ruling re-affirms fundamental principles of the law of damages and has significant consequences for the day-to-day practice of construction contracts.

A contractor was engaged to carry out a building project for an agreed contract price of almost €300,000. The developer later discovered defects, including a leaking roof and an inadequate concrete floor, and therefore refused to pay the outstanding balance of approximately €29,348.22.
The court of first instance held that the developer was entitled to damages of €19,579.04 and at the same time rejected the contractor’s claim for payment of the invoice balance. The Antwerp Court of Appeal confirmed that decision.
The contractor brought the case before the Court of Cassation, arguing that refusing to pay the invoice and awarding damages amounted to double compensation for the same loss, thereby breaching the principle of full (but not excessive) compensation.
The Court of Cassation quashed the Antwerp judgment. It accepted the contractor’s argument and found that the appellate court had awarded the developer more than the actual loss suffered, thus infringing Article 1149 of the former Civil Code.
Under the principle of full compensation a debtor must make good the loss resulting from a faulty non-performance of a contractual obligation. That loss includes both actual loss and loss of profit and should place the creditor in the position he would have been in had the obligation been properly performed.
Where a contractor performs defectively, the developer may therefore in principle claim full compensation for the loss sustained.
Crucially, the Court re-affirmed that a creditor may not at the same time:
Such cumulation would amount to double compensation and therefore to over-compensation, contrary to the principle of full reparation.
A developer faced with defective works may not both refuse to pay the outstanding contract price and claim damages for those very defects, unless he strictly applies the correct legal basis:
If the defects do not justify termination, the developer can also claim a price reduction. A price reduction adjusts the contractual balance and is distinct from damages; it cannot normally be combined with other compensatory measures.
With its judgment of 8 November 2024 the Court of Cassation puts an end to lingering uncertainty about the reciprocal rights and duties arising from defective performance in construction contracts.
The ruling upholds the logic of contractual balance: loss must be made good fully, but no more than fully. Contractors keep their right to be paid for work done, even when liable for defects—so long as that payment does not conflict with a properly established compensation or price reduction.
For developers and contractors alike this means: draft clear contracts, apply the rules on compensation correctly, and above all avoid pursuing “double recovery” before the courts.
For a comprehensive overview of the legislation governing the real estate sector in Flanders and Brussels, you can consult the new “Vastgoedcodex”, published in collaboration with KnopsPublishing.
Buy a copy (print or download – Dutch) here: https://nl.knopspublishing.be/shop/boeken/burgerlijk-recht/vastgoedcodex-vlaanderen-brussel-2025-2026/
💡 Need assistance with drafting a comprehensive model of an offer, private deed, or legal advice on real estate transactions or brokerage agreements in general?
Feel free to get in touch. Andersen’s Real Estate team is happy to assist you further.
Ulrike Beuselinck (Partner – Mediator) & Emilie Javid Milani (Senior Associate)
I am looking for a specialist in

28.07.2026
•Commercial and Economic Law, Andersen in Belgium
Since 1 July 2026, low-value imports from third countries have been subject to a new customs regime. Council Regulation (EU) 2026/382 of 11 February 2026, amending Council Regulation (EC) No 1186/2009 as regards the removal of the customs duty relief based on a value threshold, abolishes the customs duty exemption that previously applied to consignments with an intrinsic value of less than €150. At the same time, it introduces, on a transitional basis, a flat-rate customs duty of €3 per item in certain situations. This reform constitutes one of the first components of the comprehensive overhaul of the EU Customs Union launched by the European Commission to adapt customs rules to the rapid expansion of global e-commerce.

10.07.2026
•Tax Law, Andersen in Belgium
The Programme Law of 30 May 2026 has introduced - with retroactive effect from 1 January 2026 - a new condition for applying the flat-rate deduction of expenses from the gross income derived from copyright and related rights.

08.07.2026
•Real Estate, Renting and Co-ownership, Andersen in Belgium
Can a landlord refuse a prospective tenant because their income is less than three times the rent? This question has been central to the debate on discrimination in the rental market for several years. In a judgment of 30 March 2026, the Council of State expressly addressed this so-called “three-times-rent rule” for the first time. The judgment provides important clarification for landlords, real estate investors and real estate agents. The Council of State does not hold that the three-times-rent rule is automatically permissible in all circumstances. It does, however, consider that an income requirement equal to three times the rent and charges is not, in itself, disproportionate and therefore cannot, without more, be regarded as prohibited discrimination on the basis of wealth.

08.07.2026
•Commercial and Economic Law, Andersen in Belgium
On 20 May 2026, the Belgian Council of State delivered three landmark judgments (Nos. 266.735, 266.736 and 266.737) holding that the Belgian prohibition on using the terms soldes, solden, sales, Schlussverkauf outside the statutory winter and summer sales periods is incompatible with European Union law and can no longer be enforced.