Payment agreement template

Payment agreement

Starting text for counsel. Replace every bracket. Do not ask anyone to sign until a lawyer has adapted this text to the parties and to the law that will govern it.

This payment agreement is made on [Effective date] between [Payee legal name], of [Payee address] ("Payee"), and [Payer legal name], of [Payer address] ("Payer"). The Payer will pay the sum below. The Payee will apply each payment to that sum. This text is not a consumer-credit license, and it is not a court judgment.

1. The sum

The Payer agrees to pay [Sum] in [Currency] for [Reason for the sum]. The reason is specific. A line that says only 'the balance' is not enough, because the parties should be able to point to the invoice, the goods, or the work that the sum covers. The sum does not include a tax unless [Tax treatment] says that it does. The Payee does not add a fee that is not written in this text. If part of the sum is already paid, that part is [Amount already paid] and it reduces what remains. The parties write the remaining figure in the installment list so the two numbers match.

2. When each part is paid

The Payer pays the sum in the parts listed at [Installment list]. Each line of that list names the amount and the date it is due. The Payer pays each part by [Payment method] to the account or address at [Payment destination]. A new invoice does not change a date on the list unless both parties sign a change. The Payee sends a written confirmation of each payment within [Confirmation days] days. If a bank delays a transfer that the Payer started on time, the part is not late for the days [Bank delay] describes, and counsel writes that rule only if it matches how the parties actually pay.

3. If a date is missed

If the Payer does not pay an undisputed part within [Grace days] days after its date, the Payee may give written notice. If the part is still unpaid [Cure days] days after that notice, counsel chooses one result and writes it at [Missed payment result]: either the unpaid part stays due on its own, or the rest of the sum becomes due. The Payee does not add a charge unless [Interest] states a charge the governing law allows. If the law does not allow interest, counsel writes that no interest accrues. A notice does not erase a payment the Payee has already received. The Payee applies money in the order at [Application order], and does not apply it to a disputed line while that dispute is open.

4. Paying early

The Payer may pay a part or the whole remaining sum before its date. An early payment reduces the remaining sum. It does not, by itself, change a later date unless the list is rewritten and both parties sign the new list. If a charge was written for the use of time, counsel says at [Early payment credit] whether that charge is reduced when the Payer pays early. If the bracket is silent, the Payer still pays the sum, and no extra credit is assumed. The Payee accepts an early payment and confirms it in the same way as a payment made on its date.

5. What may be withheld

The Payer may withhold only a sum it disputes in writing before the due date, with the reason and the amount. The Payer pays the undisputed part on time. A dispute about quality of goods or work belongs in the contract for those goods or that work, and this text does not reopen that contract. The Payee may pause further delivery under that other contract only if that other contract says so. This payment text does not give either party a right to keep the other's property. Counsel names any set-off the law requires the parties to allow, at [Set-off], and deletes any set-off the law forbids.

6. No other debt

This text covers the sum and the parts listed. It does not cover a different invoice, a future order, or a personal guarantee. A guarantee, if the parties want one, is a separate document counsel prepares and a different person signs. The Payee does not assign the right to collect the sum unless [Assignment] allows it, and then only with notice to the Payer. The Payer pays the person named in that notice from the date of the notice, and a payment made to the Payee before the notice still counts. Neither party will describe this text as a loan license or as a regulated credit agreement unless counsel has checked that description.

7. Records

The Payee keeps a record of the list, the payments, and the confirmations for [Record period] after the sum is paid in full. The Payer may ask for a copy of that record once in any [Statement period]. The copy is a statement of the sum, not a new agreement. When the remaining sum is zero, the Payee confirms in writing that nothing remains due under this text. That confirmation does not waive a claim that is written in a different signed PDF. The parties keep the signed PDF. This web page is not the record of payment.

8. Law and changes

The laws of [Governing law] govern this text, without the conflict rules that would send it somewhere else. The parties name the courts of [Courts]. A change to the sum, a date, or a charge is effective only when both parties sign it. If one sentence cannot be enforced, the rest stays. A delay in asking for a payment is not a waiver of the rest of the sum. Notices go to the addresses above, or to a later address sent in writing. The signed PDF is the whole agreement about this sum and replaces earlier messages about the same sum. Nothing here limits a right the governing law does not allow the parties to limit, including a right counsel must preserve for a consumer if one of the parties is a consumer.

Signatures

Payee

Name: [Payee signatory name]

Title: [Payee signatory title]

Signature: ______________________________

Date: [Payee signature date]

Payer

Name: [Payer signatory name]

Title: [Payer signatory title]

Signature: ______________________________

Date: [Payer signature date]