Legal Question in Business Law in California

business law

doing service work, how long can you wait to invoice for payment?


Asked on 2/24/07, 3:18 pm

1 Answer from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: business law

Giving you a useful answer would require knowing a lot more about the type of service, whether it was performed under an oral, written or implied-in-fact contract, the amount involved and the on-going relationship between the service provider and the beneficiary of the services.

Most service providers bill monthly, in arrears. Other arrangements are common as well.

In the absence of a written contract, i.e. where there is only an oral agreement, there is a two-year statute of limitations for suits to recover amounts due. Regular billing can extend the right to sue under a tehory that an unpaid, unchallenged bill represents a new obligation.

Lawyers provide services for a fee, and most of us find that billing monthly makes it much easier to collect. Lettings sums due go unbilled for loner periods raises doubts among the clients about the validity of the charges (unless another arrangement, such as a contingency fee, has been agreed upon).

We also know that clients are much more likely to pay when billed right after a happy outcome, rather than months later when the lawyer's services seem more distantly related to the success. I suppose the same principles of client psychology would apply to other trades.

If your question relates to mechanic's liens, you should re-ask it under the construction law heading and be more explicit about your facts.

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Answered on 2/26/07, 9:38 pm


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