When it comes to financial transactions, it`s always best to have a written agreement in place. This holds true for payments made between two parties as well. A money payment agreement is a legally binding document that outlines the terms and conditions of a payment arrangement. It helps ensure that both parties are on the same page and prevents any misunderstandings or conflicts later on.
If you`re looking to draft a money payment agreement, here`s a sample template that you can use:
[Date of agreement]This agreement (“Agreement”) is made between [Payer name and address] (“Payer”) and [Payee name and address] (“Payee”), collectively referred to as the “Parties.”
Payment Details
1. Payer shall make a payment of [amount in words] dollars ($[amount in numbers]) to Payee for [reason for payment].
2. The payment shall be made by [mode of payment], on [date of payment].
3. In the event that the payment is not made on the specified date, Payer shall be charged a late fee of [late fee amount]. This fee shall accrue on a daily basis until the payment is made in full.
4. Payee shall provide Payer with a receipt of payment upon receipt of the payment.
Representations and Warranties
1. Payer represents and warrants that it has the necessary funds to make the payment and that it is not in breach of any contract or agreement by making the payment.
2. Payee represents and warrants that it has the authority to receive the payment and that it is not in breach of any contract or agreement by receiving the payment.
3. Both Parties acknowledge and agree that this Agreement shall be binding upon them and their respective successors and assigns.
Governing Law
1. This Agreement shall be governed and construed in accordance with the laws of the state of [state name].
2. Any dispute arising out of or related to this Agreement shall be resolved through arbitration in accordance with the rules of the [arbitration association] in [city name].
3. The prevailing Party in any dispute arising out of or related to this Agreement shall be entitled to recover its attorney`s fees and costs incurred in connection with such dispute.
Entire Agreement
This Agreement represents the entire understanding between the Parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings, and agreements between the Parties.
In witness whereof, the Parties have executed this Agreement as of the date first above written.
[Payer signature] [Payee signature] [Witness signature]