Back

Our offices will be closed over the Easter weekend from 5:30pm on Thursday 28 March. We will reopen as usual at 9am on Tuesday 2 April.

Get in Touch Menu

Invoicing Q&A

09 August 2013

As suppliers tighten their credit control systems and customers look for more favourable payment terms, Paul Gordon, our dispute resolution partner, answers common questions on invoicing and payment obligations.

Q1: A supplier has sent an invoice for products/services supplied a long time ago. Are we obliged to pay?

If there are no other issues with the products/services then the claim for payment is likely to be valid. If more than six years has passed it may be too late for them to ask for payment. In that case, you should seek legal advice.

Q2: A supplier has sent a further invoice for products/services previously supplied, alleging that they undercharged in the initial invoice. Are we obliged to pay?

The issues in answer one still apply. In principle, suppliers can invoice for more if they can demonstrate they had undercharged. A supplier who accepts part-payment does not necessarily waive the right to payment of the final balance. However, you may be able to refuse further payment if you can show:

(a) the supplier agreed to accept the earlier sums paid in full settlement. If you can show this, along with some form of additional consideration (for example, complying with a request to make early payment before due date) then there may be a case that the first payment defeats a claim for further payment of the same products/services; or

(b) promissory estoppel. A legal concept where you would need to demonstrate that the supplier’s conduct was such that he had waived his contractual rights to claim the further sum, the supplier intended that you would rely on that conduct and that you changed your position based on such reliance.

Q3: We paid invoices late and the supplier of products/services is now claiming statutory interest. Are we obliged to pay?

For most business-to-business contracts for goods and services, the right to both interest and a fixed sum can arise under the Late Payment of Commercial Debts (Interest) Act 1988.

The fact that you have already paid the principal amount without a demand for statutory interest does not rule out the supplier’s right to claim, unless you are able to rely on one of the grounds described in 2(a) or (b) above.

If you have any questions regarding invoicing disputes for your business, please contact our dispute resolution team.

Contact us
Disclaimer: All legal information is correct at the time of publication but please be aware that laws may change over time. This article contains general legal information but should not be relied upon as legal advice. Please seek professional legal advice about your specific situation - contact us; we’d be delighted to help.
Resources to help

Related articles

Section 8: What are the differences between mandatory grounds & discretionary grounds?

Litigation & dispute resolution

In a new series – ‘What does the law say?’ – our property litigation specialists discuss the key parts of residential possession law landlords and tenants should be aware of.…

Nick Southwell BA (Hons)
Partner

The King’s speech 2023: Changes to the property sector

Litigation & dispute resolution

In November 2023, HM King Charles delivered the King’s speech which set out the government’s planned legislative programme for the coming year. Our litigation specialists summarise the proposed bills that…

Simon Arneaud LLB (Hons)
Senior associate, solicitor

Can’t sell your property due to the ground rent? Is your service charge fee too high?

Litigation & dispute resolution

The Leasehold Reform (Ground Rent) Act 2022 came into force in June 2022 to ensure ground rent does not exceed one peppercorn per year. This only applies to new leases…

Nick Southwell BA (Hons)
Partner
Contact us