Document background
The Debt Cancellation Agreement Template is designed for use in Singapore when parties wish to formally terminate a debt obligation. This document is crucial in situations where a creditor agrees to forgive a debt, whether for commercial reasons, as part of a settlement, or due to financial restructuring. The agreement ensures compliance with Singapore's legal framework, including the Contract Act and Civil Law Act, while providing clear documentation of the debt cancellation terms, remaining obligations (if any), and mutual releases. It's particularly important for maintaining clear financial records and preventing future disputes over the cancelled debt.
