Legal Q&A · Litigation & Damages

The customer is using the works but has not signed the handover record and refuses to pay. What can we do?

Law as at 29 August 2026

Short answer

The precise wording of the agreement is decisive. If signing a handover record is agreed as a condition of handing over the works, courts have long held that without it the works have not been handed over and no entitlement to the price has arisen, even if the customer uses them. In 2025, Czech case law began denying protection to parties invoking the agreed form dishonestly; Slovak courts have not yet adopted that shift. New agreements should therefore include deemed handover.

The building is complete, the customer is operating a business in it or has sold it on, but has not signed the handover record and returns the invoice saying the works were never handed over. This is one of the most common defences against paying for works, and unfortunately it succeeds more often than might seem fair.

The law does not require a record, but the contract can make it a condition

The Commercial Code (Act No. 513/1991 Coll.) does not itself prescribe a handover record:

If either party requests it, a record of the handover of the subject matter of the works shall be drawn up and signed by both parties.

Section 554(6) of the Commercial Code (unofficial English translation)

The problem arises when the agreement goes further and makes handover conditional on a record signed by both parties. Case law on Section 554, developed by the Czech Supreme Court under the former shared Czech-Slovak Commercial Code wording, for example in case 32 Cdo 2123/2010, interprets such a clause strictly: a signed record is a substantive condition of handover. Without it, the works have not been handed over, regardless of whether the customer uses them, has delivered them to its own customer or the building has received occupancy approval. The contractor may then seek an order requiring acceptance of the works, rather than payment, unless the agreement provides otherwise.

Conversely, where the agreement merely mentions a record without linking it to handover, courts treat it only as evidence of handover. Entitlement to the price then depends on actual handover of the works. The first step in the defence is therefore always a careful interpretation of your own agreement.

Czech developments: dishonest reliance on form should not be protected

In case 23 Cdo 2565/2024, the Czech Supreme Court considered an agreement in which the completion period began on formal handover of the construction site. No record was made, but the site was actually taken over and work proceeded. The court held that a party whose conduct led the other to trust that performance would proceed informally, or who accepted or provided performance without reservation, may lose the right to rely on failure to observe the agreed form. The prohibition of abuse of rights and the principle of good faith prevent it. This interprets the Czech Civil Code (Act No. 89/2012 Coll.). Slovak courts have not yet adopted this shift under Section 554, but for defect-free works already in use it offers a strong line of argument for the contractor.

What to do now and what to agree next time

While the dispute continues, document the position: request acceptance of the works in writing, draw up a unilateral record of their condition with photographs, and preserve evidence that the customer uses them. If the customer alleges defects, request a specific list. A blanket refusal to sign without identifying defects is difficult for the customer to substantiate, rather than for you. We discuss defect claims and their relationship with damages in defects in works and damages alongside a price reduction.

New agreements should include deemed handover: if the customer unjustifiably refuses or fails to sign the record, the works are deemed handed over after an agreed period from the request. Agreeing sectional handover and the contractor’s right to draw up a unilateral record if the customer does not attend the handover also helps.

How we can help

We assess exactly what your agreement links to the record and prepare a claim for payment or an order requiring acceptance of the works. These disputes are covered by disputes over defects in works, while unpaid invoices are handled through debt recovery. To prevent the next project from stalling over a record, we design the handover mechanism in your works contract.

If the customer has stopped communicating, it is worth sending a request to accept the works before the claim grows old.

This answer provides general information on the law as at 29 August 2026. It does not constitute legal services or replace an assessment of an individual case. The details of your situation may differ. Book a consultation to discuss them.

More legal questions

All questions and answers
  1. The managing director caused the company loss, but the company is not suing. Can a member bring the claim? Yes. If the company does not pursue its own claims, typically because the wrongdoer is also its managing director or has majority support, any member may bring a claim on the company's behalf under Section 122(3) of the Commercial Code. Any recovery belongs to the company, rather than the member bringing the action. That member bears the litigation costs and is entitled to reimbursement on success. The action alone does not address the director remaining in office, so it is usually combined with other steps.
  2. We signed an agreement with an arbitration clause. Can the dispute still be brought before an ordinary court? In a business-to-business relationship, lack of jurisdiction must be raised promptly during the arbitration. If the tribunal makes a preliminary ruling confirming jurisdiction, an application to the court must be filed within 30 days after delivery of that ruling; an action to set aside the award generally has a 60-day period from delivery and is limited to statutory grounds. Enforcement review is narrower and does not replace a missed objection that the arbitration agreement is invalid or non-existent. An application to stop enforcement filed within 15 days after notice has suspensive effect, but it must rely on a permissible enforcement ground.
  3. Our company did not read a judgment in its electronic mailbox. Is it still treated as served? Generally yes. A legal entity's electronic mailbox is activated for service by law, and a judgment is served personally: service occurs when the delivery receipt is confirmed or, at the latest, when the 15-day collection period expires, even if nobody opened the message. The appeal period runs from service, after which the judgment becomes final. Later remedies are narrow and require proof of objective reasons, so monitoring the mailbox is cheaper than explaining afterwards.
  4. I lent money, but the other party says it was a gift. Who has to prove what? You prove that the money actually passed from your assets to the other party; you do not have to prove the absence of a reason for them to keep it. Anyone claiming the payment was a gift must prove that the donor intended to give the money without consideration. If no gift or other legal basis is established, the payment is unjust enrichment and must be returned. Evidence of the parties' intentions therefore decides the dispute, which is why loans should be documented.

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Mgr. Patrik Tulinský, LL.M. Czech and Slovak attorney · SAK 300422 · ČAK 19654

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