Can I sue for an unpaid invoice in small claims court in Canada?
Yes. Unpaid invoices are one of the most common small claims cases. You need a signed contract or written estimate, the invoice itself, proof of delivery of services or goods, and communications showing the debt was acknowledged. Send a demand letter by registered mail before filing.
Can I claim interest on an unpaid invoice?
Yes. If your contract specifies an interest rate, you can claim that rate. If there is no contractual rate, provincial legislation sets a default rate (typically prime + 1–3%). In Ontario the Courts of Justice Act default rate applies. Always include interest from the date the invoice was due.
What if I used a verbal contract?
Verbal contracts are enforceable in Canada. However, they are harder to prove. Emails, text messages, or voicemails that confirm the agreement and the unpaid amount are strong evidence. Witness testimony from someone who heard the agreement also helps.