Which act provides a statement of interest in the claim?

Which act provides a statement of interest in the claim?

• A. S69 County Courts Act 1984
• B. Late payment of commercial debts (interest) Act 1988
• C. Contractual interest
• D. S35A Senior Courts Act 1981

Answer: (B)

The concept being tested is the statutory entitlement to interest on late payments in commercial transactions and how you claim it in the claim. The Late Payment of Commercial Debts (Interest) Act provides a statutory right to interest on late payments and allows that interest to be claimed as part of the claim itself. In practice, if a debt is unpaid after the due date, you can include interest at the statutory rate (and any fixed sum compensation if applicable) in the claim form, so the claim itself states an amount for interest under this Act. The other options don’t establish this pre-judgment statutory interest to be included in the claim—the first relates to interest on judgments, the contract option pertains to contractual rather than statutory interest, and the remaining option concerns a different statutory provision.

The concept being tested is the statutory entitlement to interest on late payments in commercial transactions and how you claim it in the claim. The Late Payment of Commercial Debts (Interest) Act provides a statutory right to interest on late payments and allows that interest to be claimed as part of the claim itself. In practice, if a debt is unpaid after the due date, you can include interest at the statutory rate (and any fixed sum compensation if applicable) in the claim form, so the claim itself states an amount for interest under this Act. The other options don’t establish this pre-judgment statutory interest to be included in the claim—the first relates to interest on judgments, the contract option pertains to contractual rather than statutory interest, and the remaining option concerns a different statutory provision.