AGREEMENT  FOR  SETTLEMENT OF DEBT (sample)

AGREEMENT  FOR  SETTLEMENT OF DEBT

THIS AGREEMENT made the ………. day of …... 20.. BETWEEN X AND Y ENTERPRISES a Business Firm registered under the Business Names Registration Act, Cap. 213 R.E. 2002 of  P.O. Box ……………..(hereinafter called “the Creditor”) of the one part and Z AND Y  TRADING  COMPANY LIMITED a limited liability company incorporated in Tanzania under the Companies Act, Cap. 212 R.E. 2002 of P.O. BOX…………….. (Hereinafter called “the Debtor”) of the other part:



WHEREAS the Debtor is indebted to the Creditor in the sum of..………………… (Sum in words) in respect of…………………….supplied to the Debtor by the creditor on diverse dates between …………………….. and……………………… (inclusive):

See also:  Sample of Loan Agreement


AND WHEREAS the Creditor and the Debtor (hereinafter jointly referred to as “the parties”) have agreed to have the said debt settled amicably on the terms hereinafter stated:

NOW THIS AGREEMENT WITNESSETH as follows:-

1.      The Debtor admits to be indebted to the Creditor in the sum of …………………..(sum in words) the particulars of which are as stated hereinabove.

2.      The Debtor shall pay the said debt in three successive monthly installments from……………..to……………(inclusive) as follows:-

(a)   The first installment is……………… (Amount in words) and shall be paid in………………….

(b)   The second installment is…………….. (Amount in words) and shall be paid in……………...

(c)    The third installment is …………………(sum in words) and shall be paid in………………...

3.      In the event of default by the Debtor to pay any of the installments in the manner herein agreed the Creditor shall be at liberty to institute a suit in court to claim such part of the debt as may be outstanding plus interest at current commercial banks lending rate without further notice to the Debtor.





IN WITNESS WHEREOF the parties hereto have executed this agreement on the date, month and year hereinafter appearing.

SIGNED and DELIVERED by …….………..        )
………….…….……. as Proprietor for and on  )
behalf of the said X AND Y ENTERPRISES    )
 who is known to me personally/                )
identified to me by ……………………………     )           _____­­­­­­­­_______________
………………………………… the latter being     )                       Creditor
known to me personally in my presence    )
 this….……… day of ……………….., 20..            )

Signature: ……………….…….…………..……

Postal Address: ……………...….…...……...…

Qualification: COMMISSIONER  FOR  OATHS


SEALED with the common seal of the said )
Z AND Y  TRADING  COMPANY LIMITED    )
in the presence of                                           )
us both being present at the same time     )
and in the presence of each other this     )
day of  ……………….., 20..                                 )

Signature: ……………….…….…………..……

Postal Address: ……………...….…...……...…

Qualification: …………………………………..


Signature: ……………….…….…………..……

Postal Address: ……………...….…...……...…

Qualification: …………………………………..

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