- Are there any specific legal requirements in respect of payment terms?
- Is there a standard payment term set out in law? If so, what is it?
- What are the circumstances in which parties may contractually agree to extend payment beyond the standard payment term?
- May an obligation beyond the standard payment term be evidenced in a PO?
- Are there any penalties for breach of payment term legislation other that a civil claim of the seller?
- Is there any special legislation regarding payment obligations for the COVID-19 situation?
- Any additional comments
jurisdiction
1. Are there any specific legal requirements in respect of payment terms?
No.
2. Is there a standard payment term set out in law? If so, what is it?
No.
3. What are the circumstances in which parties may contractually agree to extend payment beyond the standard payment term?
The law is flexible on this. Extension of payment beyond the standard payment term is subject to agreement to vary or amend the terms of the original contract.
4. May an obligation beyond the standard payment term be evidenced in a PO?
Yes.
5. Are there any penalties for breach of payment term legislation other that a civil claim of the seller?
No.
6. Is there any special legislation regarding payment obligations for the COVID-19 situation?
No.
7. Any additional comments
Generally, in Hong Kong, payment terms are determined by agreement between the parties. The Sale of Goods Ordinance (Cap. 26) does provide for remedies for unpaid sellers and has rights to action for the price of the goods sold, but this is still subject to the terms of payment under the contract. Under the Unconscionable Contracts Ordinance (Cap. 458), if a contract or any part of a contract is found to be unconscionable by the court, the court may refuse to enforce the contract; enforce the remainder of the contract without the unconscionable part; limit the application of, or revise or alter, any unconscionable part so as to avoid any unconscionable result.
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