How to Write letter for Agreement to Compromise Debt with terms and conditions
From:
Adam Smith
Manager
ABC Finances
New York
Date: January 11, 2022
To,
Henry Gibbs
Manager
Zenith Technologies
New York
Dear Mr. Henry,
We at ABC Finances bring to you notice the compromise of debt for with the following terms and conditions,
- The company and the undersigned agree that the value of debt is a sum of Rs. 2500000/-
- The parties agree that the undersigned will accept the sum of Rs. 2500000/- as full and finalsettlement of the debt.
- The sum will be paid in twelve instalments of Rs. 208333/- each per month over a period of one year.
- Each instalment shall be paid on the 10th of every month, any delay shall give rise to interest at 12% per annum.
- In case the company fails to pay the instalments in timely manner the undersigned creditor will have full rights to prosecute the company and claim the entire amount.
- This agreement shall be binding upon to the advantages of the parties and their successors along with their representatives.
Signature of the creditor: