Deductions from invoices
29 August 2012
Q: We have received a letter from a customer stating that, in a drive to cut costs, it will deduct 5 per cent from every invoice my company submits. Is this illegal? If not, it seems to be a dangerous strategy to pursue. If it is illegal, what are our opt
A: Sherree Westell, partner in the media, brands, technology department at law firm Lewis Silkin, writes: This cut would not be against the law in itself. The key issues are whether it is a breach of a contract and, if it isn’t, whether there are any commercial reasons for accepting this arrangement.
First, you should establish...