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"invoice will be paid net 30" - does it mean check is mailed or payment is received"?

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steve2

Junior Member
"invoice will be paid net 30" - does it mean check is mailed or payment is received"?

NEW JERSEY

If a contract states that "invoices will be paid net 15" does it mean that payment will be received net 15 days, or payor will mail the check net 15 days? Where is the legal source of such matter?

Thanks,
Steve
 
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panzertanker

Senior Member
steve2 said:
NEW JERSEY

If a contract states that "invoices will be paid net 15" does it mean that payment will be received net 15 days, or payor will mail the check net 15 days? Where is the legal source of such matter?

Thanks,
Steve
Would seem to me, logically not legally, that an item is not paid for until the seller has money "in-hand". So "invoices will be paid net 15 days" means seller will have check from buyer by the 15th day...in my logical, non-legal world.
 

Zephyr

Senior Member
panzertanker said:
Would seem to me, logically not legally, that an item is not paid for until the seller has money "in-hand". So "invoices will be paid net 15 days" means seller will have check from buyer by the 15th day...in my logical, non-legal world.

I pay bills on net 30, 15, 45, etc. I have always paid as if that means the vendor hase the money by that date, otherwise that is the date the finance charges start.
 

JETX

Senior Member
steve2 said:
If a contract states that "invoices will be paid net 15" does it mean that payment will be received net 15 days, or payor will mail the check net 15 days? Where is the legal source of such matter?
It isn't PAID until the check clears... so it would mean PAYMENT received on or before the 15th day.....
 

steve2

Junior Member
where is the legal source of this?

That is exactly what I am trying to prove - my customer is saying that net 15 means that if he cuts the check by 15 days he fulfills the requirement "paid net 15", but to me this is nonsense. The customer asked me to show him what is the legal basis for the fact that payment has to be received net 15, but I couldn't find it in Uniform Commercial Code.
It is contract for consulting services and the contract is governed by New Jersey law.

JETX said:
It isn't PAID until the check clears... so it would mean PAYMENT received on or before the 15th day.....
 

panzertanker

Senior Member
steve2 said:
That is exactly what I am trying to prove - my customer is saying that net 15 means that if he cuts the check by 15 days he fulfills the requirement "paid net 15", but to me this is nonsense. The customer asked me to show him what is the legal basis for the fact that payment has to be received net 15, but I couldn't find it in Uniform Commercial Code.
It is contract for consulting services and the contract is governed by New Jersey law.
I read this to state that the tender of payment is due on the due date. PERIOD. If you do not have the CASH in hand (as JETX points out), on the due date (15 days after services rendered) then he has not fulfilled the contract.
The UCC seems to be clear, but again, I am not a lawyer:

§ 3-603. TENDER OF PAYMENT.

(a) If tender of payment of an obligation to pay an instrument is made to a person entitled to enforce the instrument, the effect of tender is governed by principles of law applicable to tender of payment under a simple contract.

(b) If tender of payment of an obligation to pay an instrument is made to a person entitled to enforce the instrument and the tender is refused, there is discharge, to the extent of the amount of the tender, of the obligation of an indorser or accommodation party having a right of recourse with respect to the obligation to which the tender relates.

(c) If tender of payment of an amount due on an instrument is made to a person entitled to enforce the instrument, the obligation of the obligor to pay interest after the due date on the amount tendered is discharged. If presentment is required with respect to an instrument and the obligor is able and ready to pay on the due date at every place of payment stated in the instrument, the obligor is deemed to have made tender of payment on the due date to the person entitled to enforce the instrument.
 

JETX

Senior Member
To be more accurate, the simple "invoices will be paid net 15" means nothing without more clarification... 15 days from WHEN??
Receipt of bill??
Date shown on the bill??
Receipt of goods/product??
Receipt of notice for Final Payment??

And what if payment is NOT made in 15 days?? What does your AGREEMENT state happens??

It would be more accurate to simply say: "We expect payment within 15 days of receipt... and if not paid within that time, we will send Vito to break your legs".
 

BelizeBreeze

Senior Member
JETX said:
To be more accurate, the simple "invoices will be paid net 15" means nothing without more clarification... 15 days from WHEN??
Receipt of bill??
Date shown on the bill??
Receipt of goods/product??
Receipt of notice for Final Payment??

And what if payment is NOT made in 15 days?? What does your AGREEMENT state happens??

It would be more accurate to simply say: "We expect payment within 15 days of receipt... and if not paid within that time, we will send Vito to break your legs".
Now THAT is a real-world LEGAL answer.:D
 

panzertanker

Senior Member
JETX said:
It would be more accurate to simply say: "We expect payment within 15 days of receipt... and if not paid within that time, we will send Vito to break your legs".
JET, I had no idea you were part of the "family".... :D
 

JETX

Senior Member
With the Godfather theme song in the background, I respond:
"Yeah!! Whacha' gonna' do bout it??" :D
 

steve2

Junior Member
payment

well, it says that "payment net 15 from date of invoice". However doesn't say
what will happen if not paid. I thought it will breach the contract because it is one of the provisions of the contract. If the contract is breached than the whole contract is void, right? Other provisions from the contract also would be void.
By the way it is contract for sale of services, so I am not sure if UCC applies. UCC is for sale of goods.


JETX said:
To be more accurate, the simple "invoices will be paid net 15" means nothing without more clarification... 15 days from WHEN??
Receipt of bill??
Date shown on the bill??
Receipt of goods/product??
Receipt of notice for Final Payment??

And what if payment is NOT made in 15 days?? What does your AGREEMENT state happens??

It would be more accurate to simply say: "We expect payment within 15 days of receipt... and if not paid within that time, we will send Vito to break your legs".
 

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