27 November 2024

Disputing an invoice due to attributable breach

When a debtor believes an invoice is unjustified, they may dispute it. In this article, I will delve into disputing invoices.

A common reason for disputing an invoice is an attributable breach (also known as default) by the creditor. This occurs when the creditor has not fulfilled their obligations under the agreement correctly. In such a case, you as the debtor can take action to dispute the invoice.

Defences for disputing an invoice

When disputing an invoice, there are several defences you can use:

Defective Performance
The debtor can argue that the creditor did not deliver the performance correctly. This may concern the quality or quantity of goods or services provided. If the creditor has not met their obligations, the debtor can dispute the invoice.

Non-Compliance with Conditions
If the creditor has not met the conditions outlined in the agreement, the debtor can use this as a defence. This might include agreed deadlines, specifications, or other contractual terms. This must be evident from the agreement made.

Legal steps

If you wish to dispute an invoice, it is essential to follow the correct steps:

Notice of Default
You must issue a notice of default to the creditor, indicating that they have not met their obligations and setting a reasonable deadline for them to comply. Only if this deadline passes without compliance does the default take effect. Default also occurs if compliance is no longer possible.
Substitute Damages
If compliance is no longer possible or desirable, you can claim substitute damages. This allows for compensation for damages suffered as a result of the breach.
Termination of the Agreement
Under Article 6:265 paragraph 1 of the Dutch Civil Code, you can (partially) terminate the agreement if there is an attributable breach that justifies termination. In such cases, default must also be present.

Disputing an invoice due to attributable breach

Disputing an invoice due to an attributable breach requires careful and legal action. Ensure that you take the right steps and seek legal advice. Each case is unique, and it will need to be assessed how to proceed.

More information

If you have questions regarding this article or if you are disputing an invoice or delivery, please contact us for advice.

Mechteld van Veen-Oudenaarden

Lawyer/associate partner

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