Legal term for payments in Colombia

Yes, payment term legislation in Colombia is essentially based on article 1551 of the Civil Code. 1 Article 1551 of the Civil Code: “The term is the time set for the fulfillment of the obligation; it can be express or tacit. It is tacit, the indispensable to fulfill it. The judge must not, except in special cases designated by law, set a term for the fulfillment of an obligation; it can only be interpreted the one conceived in vague or obscure terms, on whose application the parties disagree. This article provides that the parties are the only ones who may agree to the term, and the judge will only intervene when the terms are vague or when no term has been agreed by the parties.  Article 829 of the Commercial Code specifies the way in which the terms agreed by the parties in commercial relations should be interpreted.

2. Is there a standard payment term set out in law? If so, what is it?

No. Colombian legislation does not specify a standard payment term. 

3. What are the circumstances in which parties may contractually agree to extend payment beyond the standard payment term?

Colombian legislation does not specify a standard payment term, so the payment term must always be provided in the contracts. Consequently, if the parties wish to modify the payment term initially agreed, it must be mutually agreed by the parties. Parties must always respect the principles of good faith, public order, and good customs.  

If the parties do not reach an agreement, a judge who will settle any conflict. 

4. May an obligation beyond the standard payment term be evidenced in a PO?

Colombian legislation does not provide for a standard payment term. Therefore, the parties will be the ones who determine the term evidenced in each purchase order in the contract. They should always respect the principles of good faith, public order, and good customs.  

5. What are the penalties for breach of payment term legislation?

No. The payment term must always be agreed between the parties in the contract. However, if no term has been stipulated, in certain cases, the law supplies the term . Otherwise, this term will be defined by a judge. 

6. Is there any special legislation regarding payment obligations for the COVID-19 situation?

There are no relevant provisions.