In short
How a disputed invoice should be assessed, and why an objection is not the end of the recovery.
Test the timing
When was the objection first raised? An issue raised on delivery is materially different from one raised after three months of silence and a demand for payment.
Test the substance
Is the objection quantified? Is it consistent with the contemporaneous documents? Does it answer the whole sum or only part of it? A vague assertion of dissatisfaction is not, by itself, a defence.
Protect the undisputed balance
Where only part of an account is genuinely in issue, the balance should be dealt with rather than held hostage to the disputed element.
Choose the route
Genuine disputes may be resolved by negotiation, by a commercial settlement, through ADR, or by determination. Insolvency processes are not the appropriate tool for a debt genuinely disputed on substantial grounds.
Frequently asked
- Should we offer a discount to settle?
- Sometimes a discounted early settlement is the better commercial outcome. That is a judgement about time, cost, risk and relationship, and it should be made deliberately.
Sources & references
- Civil Procedure Rules and the Practice Direction on Pre-Action Conduct and Protocols
- Pre-Action Protocol for Debt Claims
- Late Payment of Commercial Debts (Interest) Act 1998
- [INSERT ADDITIONAL VERIFIED SOURCES USED FOR THIS GUIDE]
This guide is general information only and does not constitute legal advice. Procedures described relate principally to England and Wales. Every matter is assessed on its own facts and contractual documentation.