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Causes of Payment Delays

Payment disputes often arise when a client fails to pay for goods delivered as promised. A common reason for such delays is financial difficulty within the client’s company, potentially caused by poor economic conditions, failure to secure investments, or mismanagement of funds.
 

Even in cases of financial distress, clients may still possess valuable assets, such as office deposits, machinery, or receivables from other companies. Therefore, when payment is delayed, it is essential to investigate what assets the client retains and identify their primary banking relationships.
 

Legal Risks and the Statute of Limitations

Payment claims for goods or services constitute a form of receivables, which are subject to a legal statute of limitations. If no legal action is taken within this period, the right to claim these receivables expires. Thus, it is crucial to initiate civil litigation to recover unpaid debts before the statute of limitations lapses.
 

Overcoming Hesitations to Take Legal Action

Businesses often hesitate to sue long-standing clients due to established trust or concerns about damaging future relationships. However, waiting indefinitely will not resolve the financial issue and may result in the expiration of your legal rights, leaving you unable to recover the debt.
 

Statutory Limitations Under Civil Law

According to Article 163 of the Civil Code, certain claims are subject to a three-year statute of limitations:

1. Claims for monetary or property payments with a term of one year or less (e.g., interest, rents).
2. Claims related to medical treatment, nursing, or pharmaceutical services.
3. Claims for construction design or supervision by contractors and engineers.
4. Claims for the return of documents held by legal or financial professionals.
5. Claims related to professional services provided by lawyers, accountants, or similar experts.
6. Claims for the price of goods or products sold by merchants or producers.

Implications for Payment Claims

The price of goods sold by merchants is subject to the three-year limitation period under Article 163(6) of the Civil Code. After three years from the date the debt arises, the right to claim payment is forfeited if no legal action is taken.

While business claims under the Commercial Act are subject to a five-year limitation, the shorter period specified in the Civil Code takes precedence if applicable.
 

Conclusion: The Need for Swift Action

When a client delays payment, swift legal action is essential to protect your rights and recover outstanding debts. Delays can lead to the loss of your legal claim, especially in cases subject to shorter statutory limitations. Immediate steps, such as filing a lawsuit or initiating debt recovery procedures, ensure that your rights remain intact and prevent financial losses.