Q. If I want to sue, can I claim interest and if so at what rate and for what period?
A: The Prescribed Rate of Interest Act specifies a 10% interest rate, and it will apply from the date the summons or letter of demand is served on the party in breach.
However BOTH of these can be changed to the benefit of the plaintiff in its terms and conditions (T&C): (1) The T&C can specify a much higher rate; and (2) The T&C can also indicate that interest will run from the date of default, thus saving you a lot of money!
DISCLAIMER: Each case depends on its own facts & merits. The above does not constitute advice. Independent advice should be obtained in all instances.
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