Ousting The Statutory Interest
Parties cannot contract out of the Act's provisions.
However, it is possible to oust the statutory interest requirements, and hence of the compensation provisions, if the contract provides a substantial remedy for late payment, sufficient either for the purpose of compensating the supplier for late payment or for deterring late payment. The meaning of "substantial remedy" will depend on circumstances and as developed in case law. Suppliers can be expected in time to delete other remedies (except against non-business buyers) and rely exclusively on the Act's generous provisions.
Read more about this topic: Late Payment Of Commercial Debts (Interest) Act 1998
Famous quotes containing the word interest:
“Good breeding and good nature do incline us rather to help and raise people up to ourselves, than to mortify and depress them, and, in truth, our own private interest concurs in it, as it is making ourselves so many friends, instead of so many enemies.”
—Philip Dormer Stanhope, 4th Earl Chesterfield (1694–1773)