Law on combating late payment in commercial transactions has come into force
> October 2014

We have already informed in our June Newsletter about the forthcoming law on combating late payment in commercial transactions which has now been in force since 29/07/2014. The law has various consequences, some of them far-reaching. That is why we mention the three most important amendments once again:

1) The statutory default interest for commercial transactions between entrepreneurs has increased from 8% to 9% above the base lending rate.
2) Creditors may demand a fixed rate in the amount of EUR 40.00 from an entrepreneur who is in default for claims for payment, irrespective of the actual damage caused by default. This fixed rate, however, is to be set-off against the prosecution costs.
3) When concluding individual agreements, a term of payment exceeding 60 days after receipt of the goods may only be agreed if the agreement has been made expressly and is not grossly unfair with respect to the creditor's interests. The deadline for inspection and acceptance is 30 days. General terms and conditions providing terms of payment exceeding 30 days and deadlines for inspection and acceptance exceeding 15 days are usually invalid due to their inappropriateness.