The Court of Justice of the European Union (“CJEU”) delivered a ruling on 6 February 2025 in the case of Przedsiębiorstwo Produkcyjno – Handlowo – Usługowe A. vs. P. S.A., (Case C-677/22) whereby it interpreted the applicability of Article 3(5) of Directive 2011/7/EU on combating late payments in commercial transactions (recast) (the “Late Payments Directive”). Article 3(5) of the Late Payments Directive states that in commercial transactions between undertakings the payment period within such a contract cannot exceed 60 calendar days, unless otherwise expressly agreed in the contract and provided that it is not grossly unfair to the creditor within the meaning of Article 7 of the same directive. The CJEU in the aforementioned ruling examined the two conditions under which the period for payment can exceed 60 calendar days and elaborated on the instances where a derogation from the 60 calendar days for payment can be considered unlawful.
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