Agreement to Compromise Debt
AGREEMENT TO COMPROMISE DEBT
FOR VALUE RECEIVED, the undersigned being a creditor of _
[Company] hereby enters into an agreement to compromise and
reduce the indebtedness due the undersigned on the following
terms and conditions:
1. The Company and the undersigned acknowledge that the
present debt due is $_.
2. The parties agree that the undersigned shall accept the
sum of $_ as full and total payment on said debt and in
complete discharge of all monies presently due,
provided the sum herein shall be punctually paid in
the manner following:
_
3. In the event the Company fails to punctually pay the
reduced amount, the undersigned creditor shall have
full rights to prosecute it claim for the total debt
due under paragraph 1 [less payments made].
4. This agreement shall be binding upon and inure to the
benefit of the parties, their successors, assigns and
personal representatives.
Signed under seal this _ day of _, 19_.
_______________________________
Creditor
_______________________________
Company