In the business transactions in Qatar it is a usual practice to deliver service and goods without advance payment. This practice is widely accepted in the international business world as well.
While delivering services and goods the parties will enter into contracts for ensuring the service or delivery of goods and also for securing payments in time. The methods accepted for securing payment in this transaction is
1. Cheque
2. Invoice
The normal way of completion of the terms of contract or understanding between the parties is delivery of the goods and services and payment within the stipulated time.
Once the goods or services is delivered satisfactorily the payment shall be cleared as agreed.
The delayed payment turns to bad debt and the collection bad debt is the major issues faced by the business world.
As per the law of Qatar, the legal remedy for collection of of bad debt include civil and criminal procedures. More specifically if cheque is available for securing payment, criminal procedures can be initiated against the debtor. If the bad debt is claiming against the invoice then the remedy available is as per civil and commercial laws.
The legal remedies has to be decided also by considering the terms and conditions and the nature of contracts. The time element for initiating the legal process is equally important, especially in view of the various elements of contract executed between parties.
Hence the appropriate decision to initiate adequate and effective legal action is the proper remedy to collect the bad debt.
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