This clause sets out the steps you must follow if you disagree with an invoice—typically requiring you to notify the supplier within a specific time period (often 10-30 days) and stating that failure to dispute means you accept the invoice as correct. It matters because it protects the supplier by creating a deadline after which they can assume the invoice is valid and demand payment. In UK law, there are statutory protections under the Late Payment of Commercial Debts (Interest) Act 1998 that give you rights to dispute invoices, but this clause can override those protections if you don't follow the process. For example, if you miss the 15-day dispute deadline, you might lose your right to challenge an overcharge even if you discover it later.
Negotiate for a longer dispute period (at least 30-45 days) because you may need time to verify the invoice against delivery records and contracts. Insist that the dispute deadline only starts when you actually receive the invoice, and add language that says disputes can be raised at any time if the supplier made a genuine error or fraud (don't let them hide behind a deadline for dishonest invoices). ---
Frequently Asked Questions
What does this clause mean in simple terms?
This clause sets out the steps you must follow if you disagree with an invoice—typically requiring you to notify the supplier within a specific time period (often 10-30 days) and stating that failure to dispute means you accept the invoice as correct.
Why should I care about this clause?
It matters because it protects the supplier by creating a deadline after which they can assume the invoice is valid and demand payment.
What are my options?
In UK law, there are statutory protections under the Late Payment of Commercial Debts (Interest) Act 1998 that give you rights to dispute invoices, but this clause can override those protections if you don't follow the process.
How does this affect small businesses?
For example, if you miss the 15-day dispute deadline, you might lose your right to challenge an overcharge even if you discover it later.