Many businesses turn a RM20,000 problem into a RM200,000 problem by continuing credit after repeated defaults.
Be sure to include a "Suspension of Supply/Services" clause in your contracts to be safe.
Sample Clause below:
“Suspension of Supply / Services In the event the Purchaser / Client fails to make payment of any sum due under this Agreement by the due date, the Supplier / Service Provider shall be entitled, upon giving written notice, to immediately suspend and/or withhold any further supply of goods, performance of services, delivery, support, maintenance, access, or ongoing work until full payment of all outstanding sums (including any late payment interest and costs) has been received.
The Supplier / Service Provider shall not be liable for any loss, damage, delay, disruption, penalty, or consequential losses arising from such suspension. Any contractual timelines, delivery dates, service levels, or completion periods shall be automatically extended for a reasonable period corresponding to the duration of the suspension and any remobilisation period required thereafter.
The Supplier / Service Provider’s right to suspend performance shall be without prejudice to any other rights or remedies available under this Agreement or at law, including the right to terminate this Agreement and/or commence legal proceedings for recovery of the outstanding sums.”
Rudi Cheu (rudi@rulecolaw.com) is a content creator under the Newswav Creator programme, where you get to express yourself, be a citizen journalist, and at the same time monetize your content & reach millions of users on Newswav. Log in to creator.newswav.com and become a Newswav Creator now!
The User Content (as defined on Newswav Terms of Use) above including the views expressed and media (pictures, videos, citations etc) were submitted & posted by the author. Newswav is solely an aggregation platform that hosts the User Content. If you have any questions about the content, copyright or other issues of the work, please contact creator@newswav.com.
.jpg)