Payment demand and notice placing the debtor in default

The agreement, order, invoice and evidence of delivery or performance must be examined together. The invoice confirms the claim, but litigation may require documents proving the contractual relationship and the creditor’s performance of its obligations.

The review covers the due date, acceptance, complaints, set-offs, partial payments, penalty clauses and limitation. A demand containing an incorrect calculation can undermine credibility and obstruct negotiations.

• the agreement, schedules, orders and accepted terms;
• invoices and a detailed statement of the balance;
• delivery notes, records, reports or evidence of delivery;
• correspondence concerning acceptance, complaints and promises to pay;
• security and the debtor’s current identification details.

The Civil Code governs placing a debtor in default, including situations where this occurs by operation of law and situations where notice is required. The agreement may set its own deadlines and mechanisms, which must be observed.

In commercial transactions between professionals, Law No. 72/2013 governs late-payment interest for eligible claims. The contractual rate, statutory interest and any recovery costs must be examined without unjustified duplication of ancillary amounts.

The document identifies the parties, agreement, invoices, due dates, balance and ancillary amounts up to a specified date. The debtor is given a realistic deadline and clear payment instructions.

If court proceedings are contemplated, the notice must meet their requirements. Excessively aggressive wording, public statements or contacting third parties can create risks without increasing the prospect of recovery.

The delivery method must allow proof of both the document sent and its receipt or refusal. Email can be useful, but the contractual rules, address used and available acknowledgements must be checked.

After the deadline, the choice between negotiation, a payment order, ordinary proceedings, an insolvency application or enforcement of security depends on the documents and the debtor’s position. The notice must not promise an inappropriate legal route.