When does a commercial credit expire? Is there a risk of prescription for commercial credits and what can be done to avoid losing this right? Losing money, or other assets, is never pleasant, but collecting debts is not always easy, and the risk of losing the sums is always around the corner.
However, there are measures that can be taken to prevent economic losses over time.
The first step is to define the scope.
A credit exists when one party can claim a debt from another party.
The reason for this claim can vary, such as a loan or a consideration.
However, there are cases where the claimed credit does not exist, for example, if it arises from an unlawful act.
It is essential to define commercial credit: it can be defined as the right to receive payment in money for goods or services provided under a contractual agreement.
For such a credit to be collected, it must be certain, liquid, and due.
A credit is certain when it is clearly determined in its content and limits by the elements indicated in the enforcement title, for example, in the service contract.
A credit is liquid when its amount is expressed in a determined measure and not in a generic way.
For example, a subject may be entitled to compensation for damages, but this becomes due only when the exact amount is determined.
Finally, the third characteristic is due when there are no terms or conditions, or when the condition has occurred, and the deadline has expired.
When a commercial credit is certain, liquid, and due, the claim to execute the commercial credit can be made.
However, it is crucial to prevent the prescription of commercial credits.
If the other party complies voluntarily, there are no issues.
Otherwise, to avoid prescription, action must be taken.
One typical example is the right to payment for the delivery of goods to a customer.
In this case, if the customer fails to pay within the specified time, a reminder can be sent, and if no payment is made, a judicial injunction can be requested.
The issuance of the judicial injunction stops the prescription of the commercial credit.
However, if the creditor takes no action, the commercial credit expires after 10 years from being due.
Some specific cases have shorter prescription periods, such as lease payments, which have a 5-year prescription period.
Aside from a judicial injunction, other actions can interrupt the prescription of commercial credits.
A written reminder can also be effective.
It is crucial to outline the terms of the claim and send it with acknowledgment of receipt to prevent prescription.
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