Full legal name of PayeeFull, legal name of PromisorLoan DateTotal Amount Of LoanFinal Due Date For Repayment If one of your clients is unable to immediately settle an entire debt, he may propose to settle the debts in fixed increments in order to avoid any legal action. You can do this by a letter offering payment in installments. The conclusion of a refund agreement means that you can get the money you are owed without having to take legal action. It can also be advantageous to maintain a good business relationship with your client, especially if they are a loyal customer. This letter is not a legally binding agreement for you. The reason is that an agreement to accept a proposal to pay a debt already due is not legally binding, unless it is supported by other new conditions. I am writing this letter to confirm the payment of 5469 $US we received via the PayPal account for your purchase of the Xbox X Gaming Zone. We ask you to refer to the attached payment note. Such agreements are common between companies that agree to exchange money for goods or services. These documents can also be used by insurance companies that ask customers to accept certain payment terms.
To make it legally binding, you should either accept some form of incentive (for example. B an additional amount that your debtor pays you in return for accepting the proposed payment terms), or you could both agree to sign our separate agreement on changing the debt payment model, which your debtor may prefer because he does not need to pay you more money. , in addition to the means for which they are already fighting. After being signed by the creditor and the debtor, a letter accepting payment in installments becomes a formal legal agreement. A letter accepting payment in installments creates a formal legal agreement on the repayment of debts. These documents should not be long or complicated. However, it is important that they contain some basic elements so that the terms can be understood and interpreted by anyone who reads them. Sometimes referred to as a “salary change” or “staggered payment,” a payment letter defines a transaction between at least two parties.
I have passed the previous letter that you sent me and I am pleased to inform you that I am happy to accept the terms of the contract you have proposed. As I said, the main points on which we have agreed are: (Enter the finest details of the treaty you want to clarify) I am pleased that we have reached agreement on this important issue. Payee and Promisor both agree with the payment agreement defined above. In addition, the agreement can determine the type of penalty if the money is not repaid as agreed. Interest rates are not always part of these agreements. Your client may ask you to freeze interest and incidental costs of an outstanding amount in your staggered payment request. This is something you can do in your acceptance letter. If you refuse, the refund contract may be subject to further negotiations before being accepted by both parties. In addition to confirming the down payment received, the payment confirmation letter received by the company is also useful for the financial department. This makes it easier to track internal transactions within the company. The letter must have three paragraphs, the introductory paragraph, the institution and the conclusion.
Doing all the necessary details are mentioned so that the reader is not confused. If the borrower has to pay interest, this should be stipulated in the agreement, including how interest is calculated.