What legal steps can I take if my contractual partner does not pay?
January 16, 2022 | 80,00 EUR | answered by David Rüppel
Dear Attorney specializing in Business Law,
I am reaching out to you as I have found myself in a difficult situation and require your professional assistance. My name is Elvira Koch and I am a self-employed entrepreneur in the field of design services. Some time ago, I entered into a contract with a client for the creation of a website. I have delivered my services on time, however, my contracting party is now refusing to pay the agreed sum.
The current situation is that I have provided my services, but my contracting party is refusing to fulfill their payment obligations. This is leading to significant financial losses for me and jeopardizing my existence as a self-employed individual. I have already made several attempts to urge my contracting party to make the payment, but without success.
I am greatly worried as I rely on the agreed fee to cover my ongoing expenses and secure my livelihood. Therefore, I seek your advice: What legal steps can I take to claim my money and protect my rights as a contracting party? Are there options to reach an agreement out of court, or should we proceed directly to court? What are the chances of success in such a legal dispute and how can I best prepare for a legal confrontation?
I thank you in advance for your support and look forward to your expert advice.
Best regards,
Elvira Koch.
Dear Mrs. Koch,
Thank you for your trust and inquiry. I am sorry to hear that you are facing a difficult situation. The non-payment of an agreed fee can indeed be threatening to the existence of self-employed individuals. I will now explain to you in detail the legal steps you can take to claim your money and protect your rights as a contracting party.
First and foremost, it is important to determine whether the contract you entered into with your client is legally binding. A contract for the creation of a website falls under the realm of contract for work and services law. According to § 631 of the German Civil Code (BGB), the purchaser of a work is required to pay the agreed fee once the work is completed. In your case, you have provided your services in a timely manner, which means that your client is obligated to pay the agreed fee.
Since your client refuses to pay, there are various legal options available to you. First, you should send a written payment demand to your client, setting a reasonable deadline for payment. If your client still does not pay after this deadline, you can engage a lawyer to enforce your claims. Initially, the lawyer can attempt to reach an out-of-court settlement, for example through a payment agreement.
If an out-of-court settlement is not possible, you can proceed with legal action. In this case, you should file a lawsuit for payment of the agreed fee. The chances of success in such a legal dispute depend on various factors, such as the evidence and the terms of the contract. Therefore, it is advisable to carefully gather and secure all relevant documents, such as the contract, invoices, and communication with your client.
In a court proceeding, the claims of both parties will be examined and a judgment will be made. If you prevail, your client will be ordered to pay the outstanding fee. However, if your client is unable to pay, enforcement of the claim may be necessary to recover your money.
Lastly, I recommend seeking legal assistance early on to best represent your interests. An experienced lawyer specializing in commercial law can help you enforce your claims and find a quick solution to your problem.
I hope that my explanations are helpful to you, and I am available for further questions.
Best regards,
David Rüppel.
