August 6, 2020

This law establishes measures in relation to procedures, payment terms and invoicing of commercial operations, incorporating the obligation of payment in fair terms, applicable to all payments caused as consideration in commercial acts.

Thus, it establishes the general obligation to make payment of contractual obligations within a maximum of 60 calendar days during 2021 and a maximum of 45 non-renewable calendar days as from 2022. This term will be calculated from the date of receipt of the goods or services, even in those contracts where an acceptance or verification procedure is required to verify the goods or services provided.

Some exceptions to the application of this law apply, including the following:

  • Commercial operations carried out between companies which are considered as large companies.
  • Payments made in commercial transactions involving consumers and subject to consumer protection rules.
  • Interests related to the legislation on checks, promissory notes, and bills of exchange.
  • Payments of compensation for damages.
  • Loan agreement and other typical and atypical contracts where the deferred terms are typical of the essence of the contract.
  • Debts subject to bankruptcy or business restructuring procedures.

Payments made beyond 45 days in 2021, and 60 days from 2022 onwards, will be considered as late payments. In this case, the creditor will have the right to claim compensation for all the recovery costs incurred through an executive process, for which it must provide a copy of the contract and settlement of the compensation, and which may also be subject to any alternative dispute resolution mechanism

This law shall also apply to contracts concluded by the State, which shall adjust its billing and payment procedures and policies to the provisions of this law. In contracts governed by the general statute for public administration contracts, held between state entities and MSMEs, the maximum term for payment will be 60 calendar days from the acceptance of the invoice.

Finally, it is indicated that any clause that does not comply with the terms established in this law, the payment of interest for late payment or the liability of the debtor, will be ineffective. Likewise, acts or agreements that seek to prevent or obstruct the access of companies to markets or marketing channels, to avoid the application of the Law, may be subject to administrative sanctions or the corresponding legal actions.

Law 2024 of 2020



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