Benny worked as a contractor. He was doing extensive renovations for one of his suppliers, Shapiro’s Supplies, when he got a call from Mr. Shapiro. “What’s doing?” asked Mr. Shapiro.
“I expect to finish your job in two months,” Benny replied.
“That’s good to hear,” said Mr. Shapiro, “but there’s an issue I want to settle with you. You have an unpaid bill from last year.”
“What do you mean?” asked Benny, surprised. “I’m sure that I’m up to date with payments.”
“There’s an invoice signed by you with no record of payment, neither on the bill nor in any of our other records,” said Mr. Shapiro. “I asked you a few times for payment; I’m sure that it’s not paid.”
“I remember I paid you that bill in cash one Friday afternoon,” said Benny. “You scribbled a receipt, which is buried somewhere in my papers.”
“If you have proof, fine,” said Mr. Shapiro. “But you know that our policy, stated clearly on all invoices is that claims of payment are accepted only with presentation of evidence. The bill is already months overdue and I’d like it paid.”
“I’ll check my files, but we moved our office last week, and many papers are still in boxes,” said Benny. “It will take some time to file all the papers and find the receipt. Anyway, what’s your rush for the money? In two months I’ll be finished with the renovations. If I owe you, we’ll cancel out payment.”
“I need the payment now,” said Mr. Shapiro. “You’ll get paid what you deserve for the renovations when you finish, according to the payment plan of the contract, but I want the bill settled already!”
“I strapped for cash now,” Benny responded. “To pay that bill would require me to sell off stocks, which I really don’t want to do.”
“I’m also having trouble with my cash flow,” said Mr. Shapiro. “It’s my right to demand immediate payment.”
Mr. Shapiro summoned Benny to a din Torah before Rabbi Dayan, demanding immediate payment of the bill.
“There are two questions here: the potential evidence and the counter-debt,” said Rabbi Dayan. “When the debtor claims he has witnesses or documentation that will be available only after thirty days, if there is no loss entailed in paying now and later revoking the ruling and returning the money – we do so.”
“However, if the debtor will suffer some loss in paying now, or if there is concern that he will not be able to recollect his payment later,” continued Rabbi Dayan, “we wait and do not make him pay, provided the proof will be procured in a reasonable time. If the evidence won’t be available for a year or two, though, we require him pay now, even if there is a potential loss. The details are left to the discretion of beis din.” (C.M. 24:1; Aruch Hashulchan 24:3)
“What about the counter-debt?” asked Benny.
“In principle, when two people owe each other, each one is entitled to collect according to the terms of the respective obligations,” replied Rabbi Dayan. “If both debts are already due, in many circumstances the obligations can cancel out each other. However, if one is due and the other is not, the one that is due can demand payment now.” (C.M. 85:3; Pischei Choshen, Halva’ah 4:27[59])
“Even though beis din usually gives thirty days before enforcing collection from assets,” concluded Rabbi Dayan, “a person cannot delay payment if he is able to pay immediately, even on the expectation of a counter-debt.” (C.M. 100:2; Pischei Choshen, Halva’ah 3:2)