Interest under the Late Payment of Commercial Debts (Interest) Act 1998 | Practical Law

Interest under the Late Payment of Commercial Debts (Interest) Act 1998 | Practical Law

The Late Payment of Commercial Debts (Interest) Act 1998 adds an implied term in business-to-business contracts for the supply of goods and services, giving at least 8% a year interest on the price, plus a fixed sum and reasonable costs of recovering the debt. This practice note explains this statutory right and how to displace it by an express interest clause or other substantial remedy for late payment.

Interest under the Late Payment of Commercial Debts (Interest) Act 1998

Practical Law UK Practice Note 5-532-8306 (Approx. 43 pages)

Interest under the Late Payment of Commercial Debts (Interest) Act 1998

MaintainedEngland, Wales
The Late Payment of Commercial Debts (Interest) Act 1998 adds an implied term in business-to-business contracts for the supply of goods and services, giving at least 8% a year interest on the price, plus a fixed sum and reasonable costs of recovering the debt. This practice note explains this statutory right and how to displace it by an express interest clause or other substantial remedy for late payment.