Why buyers stop paying
Disputes over payment for goods usually follow one of a few patterns. Sometimes the buyer simply has a cash problem. More often, the buyer claims the goods were late, defective, or different from what was ordered, and the dispute becomes whether the buyer properly rejected them or kept them and must pay, perhaps with an offset. Sales of goods are governed largely by the Uniform Commercial Code as adopted in each state, which has its own rules on accepting goods and giving notice of defects. The terms printed on purchase orders and invoices often conflict, and which terms control can be contested. For cross-border sales between businesses, an international sales treaty may apply unless the contract excludes it, and the United States and many trading partners, including South Korea, have joined it.
Paperwork that proves the sale
Collect the purchase order, any signed contract or terms, the invoices, and proof of delivery such as bills of lading, carrier tracking, or signed receipts. The email trail about specifications and delivery dates is often decisive, as are any complaints the buyer raised and when. If the buyer kept invoices without objecting for some time, that history can support a claim on the account. Keep records of partial payments and any credits you issued, because they show how both sides treated the debt. If you are the buyer, preserve samples of the goods and inspection reports, and put your objections in writing promptly.
Collecting or contesting the invoice
We start with the contract terms that govern payment, interest, legal fees, and where disputes go, since many commercial agreements choose a court or an arbitration forum. A clear demand letter resolves some of these matters; others need a lawsuit, which in New York may proceed in a court suited to the amount involved. Commercial claims have a limitations period, and waiting while the relationship is tested can cost more than it saves. If the buyer is insolvent, other tools such as a reclamation demand may matter and are time sensitive. By the end of the meeting you should know the likely path and what it will ask of you.
