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An Acknowledgement of Debt Letter is a crucial document in Singapore's legal framework for debt management and recovery. It serves as a formal recognition of debt and creates a legally binding obligation between parties. The document is particularly useful when there's a need to formalize an existing debt, restart the limitation period, or establish clear payment terms. Under Singapore law, this document must contain specific elements to be legally valid and can be used in various contexts, from personal loans to business debts. The Acknowledgement of Debt Letter typically includes details such as the debt amount, origin of the debt, payment terms, and parties' information, all while complying with Singapore's Contract Law and Civil Law Act requirements.
