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Purchase agreement

185 Views  ⚫  Asked 7 Years Ago
asked on Feb 20, 2012 at 18:13
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I am not sure whether is it legal to charge interests for overdue payment.
I have made an agreement with my customer that has made some purchases from my company.
This mutual agreement stated that if he failed to settle the amount on the stipulated date, the company has the rights to charge interests on monthly basis until full payment is settled.
Please advice.
Thank you.
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3 Answers

answered on Feb 21, 2012 at 13:29
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Did you stamp the agreement?
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answered on Feb 22, 2012 at 22:31
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Yes, the agreement was stamped. So is it legal to collect interests of 15% per annum?
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answered on Feb 25, 2012 at 14:00
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It is legal to collect the interest even if contract is not stamped. 15% is reasonable but if very high, say 30%, then courts will view it as a penalty and maybe can't charge it.
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