Agreement to Compromise Disputed Account

{{company_name}}

{{company_address}}

Phone: {{phone}} | Email: {{email}} | Web: {{website}}

Agreement to Compromise Disputed Account

Agreement to Compromise Disputed Account

{{company_name}} {{company_address}} Tel: {{phone}} Email: {{email}} Website: {{website}}

AGREEMENT TO COMPROMISE DISPUTED ACCOUNT

DATE

This Agreement is made and entered into on this {{day}} day of {{month}}, {{year}}.

PARTIES

BETWEEN:

{{debtor_company_name}}, a company duly incorporated under the laws of {{debtor_jurisdiction}}, with its principal place of business at {{debtor_address}} (hereinafter referred to as "the Debtor"),

AND

{{creditor_company_name}}, a company duly incorporated under the laws of {{creditor_jurisdiction}}, with its principal place of business at {{creditor_address}} (hereinafter referred to as "the Creditor").

(The Debtor and the Creditor are hereinafter collectively referred to as "the Parties" and individually as "Party".)

BACKGROUND

WHEREAS, the Debtor is indebted to the Creditor in the principal amount of {{original_debt_amount}} ({{original_debt_amount_words}}) (hereinafter referred to as "the Original Debt") for {{reason_for_debt}}.

WHEREAS, the existence and/or quantum of the Original Debt is disputed by the Debtor.

WHEREAS, the Parties wish to compromise and settle the disputed Original Debt on the terms and conditions set out in this Agreement, in order to avoid further disputes and litigation.

AGREEMENT TO COMPROMISE

In full and final settlement of the Original Debt and all claims arising therefrom, the Creditor hereby agrees to accept, and the Debtor hereby agrees to pay, the sum of {{settlement_amount}} ({{settlement_amount_words}}) (hereinafter referred to as "the Settlement Amount").

TERMS OF PAYMENT

The Debtor shall pay the Settlement Amount to the Creditor as follows:

{{payment_terms_description}} (e.g., "in one lump sum on or before {{payment_due_date}}" or "in {{number_of_installments}} equal monthly installments of {{installment_amount}} each, commencing on {{first_installment_date}} and continuing on the {{day_of_month}} day of each subsequent month until the Settlement Amount is paid in full.")

All payments shall be made by {{payment_method}} (e.g., "EFT to the Creditor's nominated bank account") to the following account:

Bank Name: {{creditor_bank_name}} Account Holder: {{creditor_account_holder}} Account Number: {{creditor_account_number}} Branch Code: {{creditor_branch_code}}

RELEASE AND DISCHARGE

Upon full and punctual payment of the Settlement Amount, the Creditor shall release and forever discharge the Debtor from any and all claims, demands, actions, causes of action, liabilities, and obligations whatsoever, whether known or unknown, foreseen or unforeseen, which the Creditor now has or may hereafter have against the Debtor arising out of or in connection with the Original Debt.

CONFIDENTIALITY

The Parties agree to keep the terms and conditions of this Agreement strictly confidential and shall not disclose them to any third party, save where required by law or to their legal and financial advisors, without the prior written consent of the other Party.

GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of {{applicable_country_law}}.

WHOLE AGREEMENT

This Agreement constitutes the entire agreement between the Parties with regard to the subject matter hereof and supersedes all prior agreements, understandings, and negotiations, whether written or oral, between the Parties.

SIGNATURES

DULY AUTHORISED SIGNATORIES:

_____________________________

For: {{debtor_company_name}}

Name: {{debtor_signatory_name}}

Title: {{debtor_signatory_title}}

Date: {{debtor_signature_date}}

_____________________________

For: {{creditor_company_name}}

Name: {{creditor_signatory_name}}

Title: {{creditor_signatory_title}}

Date: {{creditor_signature_date}}