You have delivered work or goods, but your client refuses to pay due to alleged defects. For many entrepreneurs, this is a recognisable and frustrating situation. The invoice remains unpaid, while you believe that you have delivered correctly.
The question then is: may a client suspend payment due to complaints, and if so, under what conditions? In this article, we explain what your rights are, when suspension is permitted, and what steps you can take to still get paid.
When may a client suspend payment?
A client may only suspend payment if there is a genuine, demonstrable, and substantial defect that is directly related to the delivered work or product.
This means that:
- the defect must have been reported in a timely manner;
- the complaint must be sufficiently specific;
- the defect must be serious enough to justify suspension of payment.
In practice, however, we see that clients often interpret these rules broadly, or misuse them.
Common misunderstandings about suspension
Not every complaint gives the right to suspend payment. Frequently heard, but legally incorrect, arguments include:
- "I am not entirely satisfied";
- "It could have been done differently";
- "I do not have the money right now";
- "We will discuss this later".
Dissatisfaction is not a defect. Minor deviations or subjective opinions do not justify a complete refusal to pay.
What if the work has been largely performed correctly?
Even if there is a defect, this does not automatically mean that the client does not have to pay at all.
In many cases, the following applies:
- payment may only be partially suspended;
- the entrepreneur must be given the opportunity to remedy the defect;
- the client must cooperate in finding a solution.
A complete refusal to pay is then legally untenable.
What role does the contract play?
In a dispute over payment, the contract is crucial. Check, among other things:
- the description of the work;
- delivery arrangements;
- payment terms;
- complaints procedures;
- general terms and conditions.
Verbal agreements can also be binding, but evidence is then even more important.
What should you do immediately when payment is refused?
1. Request a specific substantiation
Have the client specify exactly:
- what defect is being claimed;
- when this was discovered;
- why this justifies non-payment.
2. Offer to remedy the defect (if reasonable)
By offering to remedy the defect, you demonstrate reasonableness and strengthen your legal position.
3. Document everything in writing
Ensure that all communication is confirmed by email. This is essential if proceedings follow.
When does the client commit breach of contract?
If you have delivered correctly and the client does not pay without a valid reason, this constitutes breach of contract.
You can then:
- enforce payment;
- claim statutory interest;
- claim collection costs;
- take legal action.
Business disputes and debt collection
In many cases, a formal legal approach already leads to payment, without a court being necessary.
Read more about our approach to business debt collection and within corporate law.
International clients and defects
With international clients, an appeal to defects can be particularly complex due to differences in law and language.
More about this can be found at international debt collection in the Netherlands.
Costs and litigation funding in payment disputes
In disputes over non-payment, we generally do not work on a no cure, no pay basis.
But importantly: in many payment disputes, litigation funding is available.
We work with an independent litigation funder who, after assessing your case, may decide to:
- pay all legal fees;
- cover the court fees;
- bear any expert costs.
If litigation funding is granted, you as the client effectively pay nothing. The litigation funder bears the entire financial risk.
About the author
This article was written by Onur Arslan, lawyer and founder of Arslan Advocaten. He assists entrepreneurs in payment disputes and business conflicts.