Retrospective Compensation

We had to cease trading with a Supplier because of poor quality.

He has now iussued us with a Small Claims Summons for £40 on each retrospective "paid invoice" going back 3 years - a total of £3000. ( No interest has been charged)

There was no contract and no written T&C's. Our terms are 60 days from date of Invoice and his invoices were all paid in these terms. His Invoice states payment due in 30 days.

Throughout the period we have been trading - he has never questioned our payment terms and we have never received a telephone call or letter asking us to pay an invoice.

When we chase Late Payment amounts we only charge interest for unpaid invoices and make one claim for compensation.

I didn't think it was possible to charge retrospectively for invoices that have already been paid ( even if there is a grey area over payment terms)

Thank you David

We are in the Small Claims Court tomorrow over his claim. I will let you know how it goes.

Paul

I would say that terms were agreed, 30 days is stated on the supplier invoices. It is the invoice which forms the contract and this also sets out the payment terms.

To prove the 60 days as the payment terms, I think I would agree with David, there would need to a regular pattern of payment.

To use the default period, there would be no customer terms or supplier terms.

No update from Anson Phillips & Associates.

What was the conclusion?