What is required for a change in payment terms?
<p>I've experienced a situation and I'm interested in the legal side of it, although not after specific legal advice.</p>

<p>The situation is:</p>

<p>A person holds an account with a company in the United Kingdom, who's terms of payment when opening the account were: payment for services required within 60 days.</p>

<p>The company has now changed their terms such that payment is required immediately on payment.</p>

<p>The company provided notice of this change in the form of an A4 sheet pinned on the wall of their reception.</p>

<p>My questions are:</p>

<p>1) Would the A4 sheet be sufficient notice, or are there other legal requirements for a change in payment terms?</p>

<p>2) If there are additional requirements that they therefore did not follow, would a person be entitled to make payment under the old terms until the requirements are fulfilled?</p>

<p>There are two possible ways this arrangement would work:</p>

<ol>
<li>The business’ terms of payment were 60 days and now the are Cash on Delivery. As each transaction is a seperate contract, they can set the terms on each however they like.</li>
<li>You have credit contract with the business independent of the substantive transactions. These are common in B2B relationships but unusual in B2C. If so they can only change the terms or cancel it by agreement or in accordance with its terms.</li>
</ol>

united-kingdom terms-of-service payment