Agreement For Partial Payment Template for Netherlands

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Agreement For Partial Payment

"I need an Agreement For Partial Payment for a €50,000 business debt to be paid in monthly installments over 18 months starting March 2025, with a higher final balloon payment and including provisions for early repayment discounts."

Document background
The Agreement For Partial Payment is a crucial document used in situations where a debtor cannot fulfill their original payment obligations and requires a modified payment structure. This agreement, governed by Dutch law, provides a legally sound framework for restructuring debt payments while protecting both creditor and debtor interests. It's commonly used in both business-to-business and business-to-consumer contexts, particularly when full immediate payment isn't feasible but both parties wish to maintain a constructive relationship. The document includes essential elements such as debt acknowledgment, payment schedules, default provisions, and may incorporate security arrangements or third-party guarantees. Under Dutch law, such agreements must comply with the Civil Code's requirements regarding debt settlements and payment obligations.
Suggested Sections

1. Parties: Identification of the creditor and debtor, including full legal names, addresses, and registration details if applicable

2. Background: Context of the original debt, acknowledgment of the amount owed, and reason for the partial payment arrangement

3. Definitions: Key terms used throughout the agreement, including 'Original Debt', 'Payment Schedule', 'Due Dates', etc.

4. Acknowledgment of Debt: Formal acknowledgment of the total amount owed and validation of the original debt

5. Payment Terms: Detailed description of the partial payment arrangement, including amount, frequency, and method of payments

6. Payment Schedule: Specific dates and amounts for each installment payment

7. Default Provisions: Consequences of missing payments or breaching the agreement terms

8. Interest and Costs: Any applicable interest rates and additional costs

9. Communications: How parties will communicate regarding payments and issues

10. Governing Law and Jurisdiction: Confirmation of Dutch law application and jurisdiction for disputes

Optional Sections

1. Security Provisions: Include when additional security or collateral is provided for the debt

2. Third-Party Guarantees: Include when a third party is guaranteeing the payments

3. Early Payment Provisions: Include when early payment options or discounts are offered

4. Debt Forgiveness Terms: Include when part of the debt will be forgiven upon successful completion of the payment schedule

5. Force Majeure: Include when parties want to address circumstances that might prevent payment execution

6. Confidentiality: Include when parties wish to keep the arrangement private

7. Tax Implications: Include when there are specific tax consequences to be addressed

8. Insurance Requirements: Include when insurance is required to secure the payments

Suggested Schedules

1. Schedule A - Payment Schedule: Detailed table of payment dates, amounts, and running balance

2. Schedule B - Original Debt Documentation: Copies or references to original debt documents

3. Schedule C - Payment Methods: Details of accepted payment methods and banking information

4. Appendix 1 - Proof of Identity: Copies of identification documents of parties

5. Appendix 2 - Authorization Documents: Any required authorization or power of attorney documents

6. Appendix 3 - Security Documentation: If applicable, documentation relating to any security or collateral provided

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant Industries

Financial Services

Banking

Retail

Manufacturing

Construction

Professional Services

Healthcare

Real Estate

Education

Telecommunications

Utilities

Technology

Hospitality

Transportation

Relevant Teams

Legal

Finance

Accounts Receivable

Credit Control

Treasury

Risk Management

Collections

Commercial Operations

Contract Administration

Debt Recovery

Relevant Roles

Credit Controller

Financial Manager

Accounts Receivable Manager

Collections Specialist

Legal Counsel

Finance Director

Credit Risk Manager

Treasury Manager

Debt Recovery Officer

Contract Administrator

Chief Financial Officer

Accounts Manager

Business Development Manager

Commercial Director

Risk Management Officer

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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