Case 1.
Mr Jan, a paver, signed a contract with a client for paving services. He completed the work, but the client refused to pay, without giving any valid reasons. What should the contractor do?
If the client refuses to pay for the service provided, the first step is to issue a reminder for payment; if this proves ineffective, a formal demand for payment should be sent, necessarily by registered post with acknowledgement of receipt, in order to document the attempt to recover the debt. This will demonstrate to the client that the matter of the outstanding payment is being taken seriously and that, if the demand for payment proves ineffective, the matter will be referred to the courts.
You can also report an unreliable business partner to the debtors’ register, which often acts as a deterrent. The debtor will want to settle their debt quickly in
order to restore their reputation as a reliable business partner (in the case of businesses) or to access the services and products offered by companies and institutions cooperating
with this register, e.g. to obtain a credit or loan (in the case of individuals not engaged in business activity).
However, if the above measures do not produce the desired results, Mr Jan should prepare to take legal action. Sometimes it is only then that the debtor is motivated to pay the service provider the remuneration due.
Case 2.
Mr Andrzej, a paver, carried out paving work in accordance with the contract and should receive full payment from the client. However, the client is asking to pay the amount in instalments. Can the contractor refuse? If he agrees, how should he protect himself against potential problems with the client’s repayment of the instalments?
If, under the contract, the client was obliged to pay the full remuneration, the contractor may refuse the request to pay the amount in instalments.
However, if the investor fulfils only part of the obligation, even if the entire debt is already due, then in such a situation Mr Andrzej – in accordance with Article 450 of the Act of 23 April 1964 – Civil Code (Journal of Laws 2020, item 1740, as amended) – is, in principle, obliged to accept partial performance. This does not, however, mean that the contractor spreads the remainder of the debt to the investor in instalments. The parties would have to agree on this matter separately.
Therefore, if Mr Andrzej wishes to receive payment in instalments, an addendum should be drawn up to the existing contract between him and the investor (specifying the exact number and amount of instalments, as well as their due dates).
Case 3.
Can Mr Marek, a paver, collect the full payment from the client before completing the job?
Although the rule is that payment is made only after the work has been completed, under the principle of freedom of contract set out in Article 353¹ of the Act of 23 April 1964 – Civil Code (Journal of Laws 2020, item 1740, as amended), under which the parties to a contract may structure the legal relationship at their discretion, it is possible to freely determine the payment date, including receiving payment before the work is carried out.
