Question
Client keeps delaying payment—what are our options?
We invoice monthly, but there’s no clear due date in our contract. Can we treat late payments as a breach and take legal action?
Answer
If your contract doesn’t set a due date, the law usually says payment is due within a reasonable time. What’s “reasonable” depends on your industry and your past dealings with the client.
If that time has passed, you can send a formal notice that lists the amount owed and a clear deadline for payment. But if you’ve often accepted late payments before, a court might see that as agreeing to flexible terms. In that case, you may need to warn the client in advance before enforcing strict deadlines again.
Going forward, it’s a good idea to include clear payment terms in your contracts, such as “Net 15” or “Payment due within 15 days of invoice.” This helps avoid confusion and makes it easier to take action if payments are delayed.
What to consider in your specific situation
Your legal options depend on your contract’s language, the payment pattern, and how you’ve handled past delays.
- Whether the contract defines payment timing or due dates.
- What counts as a “reasonable time” under your state law.
- Prior communications or acceptance of late payments.
- The value of unpaid work or services delivered.
- How termination and breach clauses are written.
For more information about your contract terms and possible next steps, consider using Rocket Copilot or a Legal Pro.
At Rocket Lawyer, we follow a rigorous editorial policy to ensure every article is helpful, clear, and as accurate and up-to-date as possible. This page was created, edited and reviewed by trained editorial staff who specialize in translating complex legal topics into plain language, then reviewed by experienced Legal Pros—licensed attorneys and paralegals—to ensure legal accuracy.
Please note: This page offers general legal information, but not legal advice tailored for your specific legal situation. Rocket Lawyer Incorporated isn't a law firm or a substitute for one. For further information on this topic, you can Ask a Legal Pro.
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Disclosures
- This page offers general legal information, not legal advice tailored for your specific legal situation. Rocket Lawyer Incorporated isn't a law firm or a substitute for one. For further information on this topic, you can Ask a Legal Pro.