Document background
The Notice of Late Payment (Mahnung) is a critical business document used when a payment obligation remains unfulfilled after its due date under German law. This document serves as a formal reminder and is often a prerequisite for establishing payment default (Verzug) according to § 286 of the German Civil Code (BGB). It typically follows after an invoice's payment term has expired and precedes any legal collection proceedings. The notice must contain specific elements required by German law, including clear identification of the outstanding debt, payment instructions, and potential consequences of non-payment. It's an essential tool in accounts receivable management, establishing a legal basis for claiming default interest and potentially initiating further legal action through the German courts if necessary.
