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Partial Payment Agreement Form Template for England and Wales

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Key Requirements PROMPT example:

Partial Payment Agreement Form

"I need a Partial Payment Agreement Form for a £50,000 business debt to be paid in monthly installments of £2,500 starting from March 2025, with a 5% interest rate and default provisions if payments are missed."

Document background
The Partial Payment Agreement Form is utilized when parties need to formalize an arrangement for settling an existing debt through structured payments. This document, governed by English and Welsh law, is commonly used when a debtor cannot immediately pay the full amount owed but both parties agree to a scheduled payment plan. It includes essential details such as payment amounts, dates, methods of payment, and consequences of default. The agreement provides legal protection for both creditor and debtor while ensuring compliance with UK financial regulations and debt collection practices.
Suggested Sections

1. Parties: Identifies and defines the parties to the agreement - the creditor and debtor

2. Background: Explains the context of the original debt and reason for partial payment arrangement

3. Definitions: Defines key terms used throughout the agreement including Original Debt, Payment Schedule, Default

4. Original Debt Amount: States the original amount owed and acknowledges the debt

5. Payment Terms: Details of the agreed payment schedule, amounts, and payment methods

6. Default Provisions: Sets out consequences of missing payments and remedies available

7. Governing Law: Confirms jurisdiction as England and Wales and applicable law

Optional Sections

1. Interest Provisions: Terms regarding any interest charges on the outstanding amount

2. Security: Details of any collateral or guarantees securing the debt

3. Early Payment Provisions: Terms and conditions for early settlement of the debt

4. Consumer Rights: Additional protections if the debtor is a consumer under Consumer Credit Act

Suggested Schedules

1. Schedule 1 - Payment Schedule: Detailed breakdown of payment dates and amounts

2. Schedule 2 - Original Debt Documentation: Copy or summary of the original debt agreement

3. Schedule 3 - Direct Debit Mandate: Form for setting up automated payments if applicable

4. Schedule 4 - Notice of Cancellation: Required for consumer agreements - statutory cancellation rights

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions























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Relevant Industries
Relevant Teams
Relevant Roles
Industries

Contracts Rights of Third Parties Act 1999: Primary legislation governing how third parties may enforce terms of a contract and their rights under contractual agreements

Consumer Credit Act 1974: Regulates consumer credit agreements and provides consumer protections in credit arrangements

Limitation Act 1980: Sets out the time limits within which different types of legal claims must be brought

Late Payment of Commercial Debts (Interest) Act 1998: Establishes rules for charging interest on late payments in commercial transactions

Consumer Rights Act 2015: Main consumer protection legislation covering contracts for goods, services, and digital content

Consumer Protection from Unfair Trading Regulations 2008: Prohibits unfair commercial practices and sets standards for business-to-consumer transactions

Unfair Terms in Consumer Contracts Regulations 1999: Protects consumers against unfair standard terms in contracts with traders

Financial Services and Markets Act 2000: Primary legislation for regulation of financial services and markets in the UK

UK GDPR: Post-Brexit data protection regulation governing the processing of personal data

Data Protection Act 2018: UK's implementation of data protection standards, working alongside UK GDPR

Statute of Frauds 1677: Historical legislation requiring certain types of contracts to be in writing

Law of Property (Miscellaneous Provisions) Act 1989: Governs formalities for contracts relating to land and property interests

Common Law - Doctrine of Consideration: Legal principle requiring that all parties to a contract must provide some value or consideration

Common Law - Contract Formation: Legal principles governing how valid contracts are formed, including offer, acceptance, and intention to create legal relations

Common Law - Contractual Interpretation: Legal principles used by courts to interpret the meaning and effect of contractual terms

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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