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. We want an arbitration clause in a commercial contract. What must it contain in order to be valid and usable? The clause must be in writing and must state clearly which disputes under which contract are to be resolved in arbitration. It matters just as much to determine who will decide: a permanent arbitration court, which in Slovakia may be established only by a chamber set up by statute, by the Slovak Olympic and Sports Committee or by a national sports association, or ad hoc arbitrators with a clear procedure for their appointment. Add the place and language of the proceedings and the governing law; review of an award by a further arbitrator is possible only if you agree it in the arbitration agreement itself.
  2. Can we put an arbitration clause in our standard terms for consumers? No. In Slovakia a dispute with a consumer may be resolved in arbitration only on the basis of a separate consumer arbitration agreement, which is separate in content and in form from the purchase contract or the standard terms and names a permanent arbitration court entered in the Ministry’s list. Even such an agreement does not prevent the consumer from bringing an action before a court, and the trader cannot effectively object that the court lacks jurisdiction where consumer arbitration proceedings have not yet begun. Czech law excludes disputes under consumer contracts from arbitration altogether.
  3. We have no registered trademark. Can we stop a competitor from using a similar name or logo? Often yes. The Commercial Code treats the creation of a likelihood of confusion as unfair competition, including the use of a business name or of a distinctive designation of an undertaking already lawfully used by another competitor; registration of a trademark is not a precondition. You will, however, have to show that you used the sign earlier, that customers associate it with you, and that the competitor’s name or logo is apt to confuse them. Do not wait: if the competitor applies to register a similar sign as a trademark, you must also defend yourself in proceedings before the Industrial Property Office.
  4. Someone filed agreements transferring our properties with the land register, but we did not sign them. What should we do? Act immediately, before the district office decides on registration. Approval becomes final on the day it is issued, and the Act expressly excludes appeal, reopening and review outside appeal proceedings. While the proceedings remain pending, it is possible to secure their suspension and a notice in the register. After approval, the only remaining route is a court claim and litigation that can last years.

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

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