Letter Accepting Payments in Instalments

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What is it?

A Letter Accepting Payment in Instalments is a concise letter accepting debt repayments from your debtor in instalments. It sets out the amount as well as the time in which the debt has to be repaid.

Why do you need it?

If you have received an offer by a debtor to pay off their debt in regular fixed amounts, you can use the Letter Accepting Payments in Instalments to formalise the agreement for the repayment. It can prevent any potential legal disputes by setting out clear rules for the repayment of the debt.

A Letter Accepting Payments in Instalments reserves your right to take any legal action to recover outstanding debt. If the debtor fails to repay the debt on time, this letter can serve as evidence of your agreement.

Key clauses to watch for:

When drafting a Letter Accepting Payments in Instalments, it is important to focus on a number of key clauses, in particular:

  • The details of the debt;
  • The details of the debtor;
  • The details of the creditor and creditor's bank account;
  • The invoice number;
  • The amount paid in instalments; and
  • The date of repayments.

Letter Accepting Payments in Instalments Document

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