Sample Settlement Agreement Payment Plan

Accept the fact that sometimes the regulation proposed by a defendant is in bad faith. The accused does not intend to follow suit. The accused will never pay the first instalment or a payment. It`s a quiet expectation. After a delay in payment, the defendant proposes to settle the obligation in the transaction contract by paying a reduced amount. The disaster is the acceptance of the amount discounted in full payment of the debt without the funds in possession. If there is a late payment, the defendant will argue, and perhaps properly, that the applicant has agreed to accept a lesser amount and that the alleged agreement constitutes a replacement and an innovation or a written modification of the transaction contract. With a reformed contract that reduces payment to the applicant, but in which the applicant negotiates for payment and not another promise of payment, is an invitation to more litigation. Villages that impose excessive judgment invite anger (Sybron v. Clark Hospital Supply Corp. (1978) 76 Cal.App.3d 896). CONSIDERING that, through the goodwill of both parties, DEBTOR and CREDITOR wish to guarantee the amount of the debt by concluding a new agreement that the AMOUNT of USD 3,000.00 will be included in a structured payment contract on the terms provided; Several pieces of information will be needed to balance the text of this agreement. In the beginning, we will consolidate the parties who intend to enter into this contract.

First, we will identify the creditor. That is, the party that holds the debt. Write down the creditor`s legal name on the first space of the first paragraph. Then, with the second empty line, document the address of the creditor`s street. Finally, the third and fourth empty posts will need the city and the state linked to the creditor`s designated road address. Then we will identify the debtor. This is the party that is required to repay the debts outstanding to the creditor. We must document the same information about the creditor in the rest of this paragraph. Then, if you are looking for the fifth empty space in this paragraph, document the debtor`s full name. Continue the debtor`s report with his address, city and state of residence on the sixth, seventh and eight empty spaces.

In other areas, information is also needed, starting with the date of “I. Validity Date.” This is the date on which the terms of this agreement act or take effect. Save the name of the month, the double-digit day and the double-digit year on the first calendar day during which the agreement becomes active. Then, in “II. Current debt” we will have to document the full current debt that the debtor is obliged to pay the creditor.