Default
Default means basically negligent non-payment despite maturity. Default is generally brought about with a reminder after a monetary claim has become due. It is also possible to put a buyer automatically in default by indicating a deadline definable in the calendar. For instance: ‘Payable until...’. However, this has to be pointed out to the buyer in advance in a contract or in the General Terms and Conditions. According to the law on acceleration of due payments (Gesetz zur Beschleunigung fälliger Zahlungen [BGBI I]) it is also possible to place the debtor in default if an invoice reaches him after the due date. It is assumed here that the debtor can clearly establish from an invoice the amount to be paid.
Under section 286, subsection 3, line 1, German Civil Code (BGB), the debtor shall automatically be in default at the latest when he has not paid within 30 days of the debt becoming due and the invoice being received – without being sent a reminder. If the debtor is a consumer, this rule must be referred to explicitly on the invoice. Upon expiry of this period he is obliged to compensate for the damage caused by default.