Partial Payment Installment Agreement Template for Malaysia

The Partial Payment Installment Agreement is commonly used in Malaysian business and financial transactions when a debtor requires a structured approach to settling an outstanding debt. This document becomes relevant when the original payment terms need to be modified to accommodate the debtor's financial circumstances while protecting the creditor's interests. It is particularly useful in situations where immediate full payment is not feasible, but both parties wish to maintain a professional relationship while ensuring debt recovery. The agreement must comply with Malaysian legislation, including the Contracts Act 1950, Civil Law Act 1956, and where applicable, the Money Lenders Act 1951. It typically includes detailed payment schedules, interest calculations, default provisions, and may incorporate security arrangements. This type of agreement is widely used across various sectors, from small business transactions to larger commercial dealings, providing a legally sound framework for debt restructuring.

1. Parties: Identification and details of the creditor and debtor, including registration/identification numbers and addresses

2. Background: Context of the original debt and reason for entering into installment arrangement

3. Definitions: Key terms used throughout the agreement including 'Due Date', 'Installment Amount', 'Outstanding Balance', etc.

4. Acknowledgment of Debt: Formal acknowledgment of the total outstanding amount owed

5. Payment Terms: Details of installment amounts, payment schedule, and payment methods

6. Default Provisions: Consequences of missing payments and remedies available to the creditor

7. Representations and Warranties: Basic declarations by both parties regarding their capacity and authority to enter into the agreement

8. Governing Law and Jurisdiction: Specification of Malaysian law as governing law and jurisdiction for disputes

9. Execution: Signature blocks and execution formalities