Promise To Pay Agreement Template for Singapore

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Key Requirements PROMPT example:

Promise To Pay Agreement

"I need a Promise To Pay Agreement for a business loan of SGD 50,000, to be repaid in monthly installments over 24 months starting from March 2025, with a company-provided vehicle as security."

Document background
A Promise To Pay Agreement is commonly used when formalizing debt arrangements in Singapore. It's particularly relevant when restructuring existing debt or documenting new lending arrangements. The agreement provides certainty for both creditor and debtor by clearly stating the amount owed, repayment terms, and consequences of default. Under Singapore law, such agreements must comply with various regulations including the Contract Act, Civil Law Act, and where applicable, the Money-lenders Act.
Suggested Sections

1. Parties: Identification and details of the creditor and debtor

2. Background: Context of the debt and circumstances leading to the agreement

3. Definitions: Key terms used in the agreement

4. Amount Owed: Clear statement of the principal amount owed

5. Payment Terms: Payment schedule, method, and deadlines

6. Interest Rate: Applicable interest rate and calculation method

7. Default Provisions: Consequences of missing payments

8. Governing Law: Specification of Singapore law as governing law

Optional Sections

1. Security: Details of any collateral or security provided - use when debt is secured by assets

2. Guarantor Provisions: Terms relating to any guarantors - use when a third party guarantees the debt

3. Early Payment Provisions: Terms for early repayment - use when early repayment is allowed

Suggested Schedules

1. Payment Schedule: Detailed breakdown of payment dates and amounts

2. Security Details: Description of any security or collateral provided as part of the agreement

3. Interest Calculation Schedule: Detailed method for calculating interest and examples of calculations

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

Industries

Contract Act (Cap. 53): Primary legislation governing contract formation, validity, and enforcement in Singapore. Covers fundamental principles of offer, acceptance, consideration, and contractual obligations.

Civil Law Act (Cap. 43): Governs contractual formalities and provides regulations regarding interest rates and payments in contractual agreements.

Limitation Act (Cap. 163): Establishes time limits for enforcement of contractual rights and specific limitation periods for debt collection actions.

Money-lenders Act (Cap. 188): Regulates money lending activities, including restrictions on interest rates and mandatory terms for loan agreements.

Consumer Protection (Fair Trading) Act: Protects consumer interests in transactions and provides regulations against unfair trading practices.

Bankruptcy Act (Cap. 20): Outlines implications for debt recovery and establishes rights and obligations in case of debtor's bankruptcy.

Rules of Court: Sets out procedural requirements for enforcement of agreements and available legal remedies in Singapore courts.

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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