Business & Commercial Law FAQ - Statement of claim?
Date: March 03, 2011
Q. We have been dealing with a company who has been providing services to us for some years and we have always paid them 60 days. Recently due to changing business conditions we have not used their services and have been served with a statement of claim claiming amounts outstanding past 14 days. Is there anything we can do in these circumstances and can you help us?
A. Yes. We would need to examine their paperwork to ascertain what their normal terms of credit are. Irrespective if they have continued to allow you 60 days credit as part of the course of commercial dealing then you may very well have a defence in the matter. You will need to lodge a defence to protect your position, however, in the meantime we would need to negotiate with the plaintiff to reach an acceptable outcome without the necessity for further involvement of the court and to limit costs.
