What Does "invoices Will Be Paid Net 15 Days" Means

steve2

I have a contract for providing consulting services, where I am the provider. I have dispute with my customer on what our payment terms are. Contract states that " invoices will be paid net 15 days" and my understanding is that this means that I have to receive payment by the 15 the day. The customer is saying that this means that he has to mail payment by the 15th (and I in fact receive it on the 20 or 21st day).
Could you advise me where is the legal source of what "payment" means and how can I fight him. Specifically, can I accuse him of breeching the contract?

mdshunk

Is 5 or 6 days really screwing you up?

That contract language seems vague. "Invioces will be paid..." is quite different from "Invioces due..." or "Invioce payment must be received...". You could stand to buff up that sentence in your contract.

That reminds me of a sign behind the lunch counter of a restaraunt that I frequent. It reads, "No one will be caught not weighing ice cream". My first thought was, if no one's going to get caught, why weigh it anyhow?

JustaFramer

Regardless is they sent it out in the mail they have ten days from the due date to still be considered in good standing. If you had it in your contract something like this; payment due on the 15th or post marked by the 15th after the 15th a 5% late fee with be applied.
They wouldn't be trying to mess around if your serious about a late fee.

Woodcrafter74

Yeah, the wording could probably use some brushing up, but regardless, net 15 means due 15 days out--NOT postmarked or mailed. I worked in Accounts Receivable in a past life, I've heard this excuse and probably a hundred others.

Flimmer

My experience in rentals is that if I want my payment by the 5th of each month I have in the lease that if it is not in my hands by the 5th of the month that they have a late fee of $25.00. Does this mean I charge if I get it by the 6th. No, but it gives me the option and I have used it with repeat offenders of this rule.. I also make them initial the line that states this and discuss it before we sign the lease..

In my opinion you should not get into a pi$$ing match with your customers over this. Your terms are not very clear, but the next contract I would make sure you word it properly and make them initial next to the line that states this. Just my opinion.

Flimmer

K2

I never pay off of invioces. We only pay statements. Some suppliers send invoice with every purchase and we ran into double paying when an invoice would come in and then the month end statement.<P>

With computerize statements it's easy to give an exact due date but in the old days around here we used "10th prox" meaning the next time the calander hit a 10, payment was due. (prox is from latin meaning something like that)

steve2

The customer told me that is willing to do that (received by the 15, not mailed by the 15), if I show him where the law states that due 15 means received 15, not mailed 15. Could you pint me to the legal source of your opinion, which is also mine, but I am having difficulties proving it.
Another question - if I am right is this situation basis for breach of contract?

Cole

Seems to me like your are trying to find ways out of the contract.

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Flimmer

Did you provide your services yet? If so, then get your money a little bit later than you expected, and then make sure you tell him or other customers on the next contract, what YOU want! After all, It's your contract, it's up to YOU if you provide the services or not. Write it the way YOU want it and if they sign, great, if they don't move on.. I guess my point is that you should be calling the shots if it is your company. If you screwed up on the last contract and the customer is holding you to it(surprise, surprise), live and learn.

Flimmer