Q&A: Disputing an invoice
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If you receive an invoice for more than you expect or that demands payment for faulty goods, negotiation and knowing your rights could keep you out of court. Kenneth Stangoe (KS), partner at Geoffrey Leaver Solicitors in Milton Keynes, gives Tom Whitney the facts
What I can do to avoid this happening?
KS: "Disputes occur when businesses fail to agree terms in advance. Time spent clarifying exactly what each party does and when - including standard terms and conditions in writing - should iron out misunderstandings before they happen." What steps can I take before going to court? KS: "Contact the supplier immediately to tell them about the problem then back it up with a letter. Don't wait to be chased. By being proactive you can ensure the supplier starts to resolve the issue, while it doesn't look as if you are simply avoiding payment. "Be clear about your reasons for not paying and be prepared to negotiate a settlement. The onus is on the supplier; they can't charge late-payment interest while a debt is in dispute. If you only disagree with part of an invoice, pay the portion that isn't disputed. "Establish a paper trail and take the lead. If it does end up in court, you can show your complaint isn't raised in response to a letter from a solicitor, which suggests a lack of credibility." How can I decide if it's worth the fight? KS: "It's only worth the fight if you are on firm ground and you don't need to use the supplier again. Before things get out of hand, speak to your solicitor. Take the commercial view: you may not want to risk losing the supplier. "Solving the dispute comes down to the terms of the contract. There are going to be circumstances where you can refuse to pay, such as when there is a fundamental breach of contract. In this situation, you are likely to be able to reject the goods and get your money back. However, you need to be careful that there actually is a serious breach and you aren't had up for wrongful rejection. "If you do choose to dispute the invoice, make the decision as quickly as possible, or it could be said you have accepted the goods anyway." What happens if they threaten you with court action? KS: "The key message is to avoid court unless you have good reason to think you will win. If not, it can be a serious waste of time and money. "Going to court is expensive and time-consuming; you will need to seek legal advice. The Citizens Advice Bureau Service in Scotland provides free guidance. "Bear in mind you have to pay court fees in advance, but you can recover them if you win. However, if you lose, you will not be able to claim costs back. "Negotiation is often the best method of resolving disputes. You should be seen to act reasonably at all times."
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