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Help Needed on Contract

The clause below is from a contract and being thick I wondered does this mean if the bill isn't paid within seven days there will be a calculation done - when the payment is made - to add interest of 7.5% pa on the amount outstanding and for the length of time it has been outstanding?

Help welcomed

Phil

"The Vendor to provide the details of their solicitor & to instruct them to pay us the due commission, from the proceeds of sale & within seven days of the legal completion. If commission remains unpaid after this period interest will be charged at 7.5%."

Reply to
Phil
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calculation

I don't see any pa in the clause.

Reply to
Peter Saxton

I don't see any pa in the clause.

Reply to
Phil

In message , Phil writes

Looks like an estate agents contract, but poorly written, and designed to say what you infer. If you are concerned, ask them to rewrite it in clearer terms.

It will likely be academic as long as the bill is paid within 3/4 weeks of completion, or so.

My agreement says something like 4% over National Westminsters base rate, but I have only once enforced it, more as a matter of principle rather than for the money.

Reply to
Richard Faulkner

calculation

It could go either way. I'd say you'd have to pay 7.5% (NO PA!) even if you were one day late but also it allows you to be late and what's to stop you being 10 years late and only paying 7.5% (NO PA!)?

Reply to
Peter Saxton

It could go either way. I'd say you'd have to pay 7.5% (NO PA!) even if you were one day late but also it allows you to be late and what's to stop you being 10 years late and only paying 7.5% (NO PA!)?

Reply to
Phil

"I understand it it went to court they would apply a percentage of their choice in the absence of clarity in the contract.

Phil"

Who's "they"?

Reply to
Peter Saxton

Phil"

Who's "they"?

Reply to
Phil

"The court carry a fixed interest which I believe at present is in the region of 8%.

Phil"

Doesn't that only apply if you lose the case? I don't think they use as a way of sorting out badly worded terms in a contract.

Reply to
Peter Saxton

Phil"

Doesn't that only apply if you lose the case? I don't think they use as a way of sorting out badly worded terms in a contract.

Reply to
Phil

"Phil" wrote

Aren't small businesses now allowed to charge a specific amount (something like 4%?) over base rate on late-paid debts, even if there's no clause in the contract which specifies interest??

Reply to
Tim

So can big businesses for invoices after 7 August 2002.

Reply to
Peter Saxton

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