The late payment under the EU legislation
The late payment under the EU legislation

Summary/Abstract: According to Article 14 EC, the European Union shall guarantee the freemovement of goods and services. In this regard, it is necessary that the entrepreneurs should be able to do their business throughout the internal market and to recover their receivables in due time. Therefore, that late payment represents an obstacle to the properfunctioning of the internal market. The Directive on combating late payment in commercial transactions, Directive 2000/35/EC is placed in the context of maintaining and developingan area of freedom, security and justice. This Directive governs all commercial transactions irrespective of whether they are carried out between private or public entrepreneurs or between entrepreneurs and public authorities, having regard to the fact that the latter handle a considerable volume of payments to business. It should therefore also regulate all commercial transactions between main contractors and their suppliers and subcontractors. This paper explores the legal framework on late payment of trade credit from the European legislation perspective.

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