HOW A COMPANY MAY LEGALLY RECOVER A DEBT FROM ITS DEBTOR IN RWANDA.

HOW A COMPANY MAY LEGALLY RECOVER A DEBT FROM ITS DEBTOR IN RWANDA.

Law applicable

• CONSTITUTION OF THE REPUBLIC OF RWANDA
• LAW GOVERNING CONTRACT
• CIVIL CODE BOOK 111
• Among others which may provide specifically for such contracts.
• The company should first look at the terms and conditions of the contract for guidance
• Managing director (MUKURU GENZI) or any authorized person in the company should then draft a payment a reminder (NOTICE) addressed to the DEBTOR or DEBTORS if many.
• The payment reminder should be copied to the Guarantors too if any.
• The reminder should clearly state the period within which to pay, basis of payment and the sum being demanded in accordance with the terms and conditions of the contract in issue.
• Failure for the debtor(s) to honour your reminder for payment, The Company should instruct transactions lawyer/Advocate/AVOCAT/Maitre/Wakili at a fee with all necessary documents touching the transaction to recover the Debt.
• The transactions lawyer/Advocate/AVOCAT/Maitre shall peruse the documents provided and have an interview with the responsible/concerned officers/witnesses from the company for purposes of ascertaining the claim.
• If the transactions Lawyer/Advocate/AVOCAT/Maitre finds merit in the information provided he or she will then prepare a demand note cum notice of intention to sue addressed to the debtor/debtors precisely laying out all the company’s claims and the period within which to satisfy them as per the law.
• In the event that the debtor/debtors do not pay as demanded and there is arbitration /mediation clause in the contract,The transactions lawyer/Advocate/AVOCAT/Maitre should then prepare the arbitration claim/summaries or mediation claim or summaries and submit them to an arbitrator or mediation if already appointed in contract.
• In case there is no arbitration clause or mediation clause the pliant will be drawn and filed with the necessary attachments in appropriate court for recovery of the debt.

NB: Issuing notice of intention to sue is optional in Rwanda however it is good practice to issue one before proceeding for litigation for avoidance of any doubt.

Though in Rwanda commercial court cases take a short while in court, it is my humble considered recommendation that the business community should embrace litigation as a shield not a sword(it should be a last resort to protect your interest)

Author is A regional transactions legal consultant (ADVOCATE) at NOA REGIONAL ASSOCIATED ADVOCATES AND LEGAL CONSULTANTS.

contacts+250787311255,+256788105242,+256782105042
What sup +250787311255

Email address: onlinetransactionconsultancy@gmail.com.

NOTE: whereas the author has made necessary efforts to ensure the accuracy of this post, it is not intended to provide specific legal advice to a particular individual as individual situations may differ.

For specific technical / legal transaction advice on this subject matter and related subject, you may contact the author at online consultancy fee, or contact any transaction legal consultant of your choice.
For avoidance of impersonation, all email correspondences/communication from me to you must be followed up with a phone call on the above mobile number to verify the contents of replies from my email account pertaining a given subject matter..
© Copyright 2019 okumu martin