When it comes to final payment agreements, having a well-drafted agreement is crucial for ensuring that all parties involved have a clear understanding of their obligations. In this article, we’ll provide you with a final payment agreement sample that you can use as a starting point for your own agreement.
What is a Final Payment Agreement?
A final payment agreement is a legal document that outlines the terms and conditions of the final payment to be made between a buyer and seller. This agreement is typically used in cases where a substantial amount of money is being exchanged, such as in real estate transactions or the sale of a business.
A final payment agreement typically includes the following information:
– Names and addresses of both parties involved in the transaction.
– The total amount of the purchase price or debt to be paid.
– The agreed-upon payment schedule, including dates and amounts.
– Interest rate, if applicable.
– The consequences of defaulting on the agreement, such as late fees, penalties, or legal action.
– Signatures of both parties, indicating their agreement to the terms and conditions of the agreement.
Final Payment Agreement Sample
[Insert Date]
Final Payment Agreement
This final payment agreement (“Agreement”) is made and entered into between [Insert Buyer’s Name] (“Buyer”), with an address of [Insert Buyer’s Address], and [Insert Seller’s Name] (“Seller”), with an address of [Insert Seller’s Address].
WHEREAS, Buyer and Seller entered into a purchase agreement on [Insert Date], for the sale of [Insert Description of Property or Services], for a total purchase price of [Insert Purchase Price].
WHEREAS, Seller has delivered the goods or provided the services set forth in the purchase agreement and has fulfilled all of its obligations under said agreement.
NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:
1. Payment Schedule. Buyer shall make payment of the remaining balance of [Insert Remaining Balance] in [Insert Number of Payments] equal installments, with the first payment due on [Insert Due Date of First Payment], and subsequent payments due on the [Insert Due Date of Subsequent Payments] of each month thereafter.
2. Interest. Any remaining balance not paid on the following due date of each installment shall accrue interest at a rate of [Insert Interest Rate] per annum.
3. Default. In the event that Buyer fails to make any payment when due, Buyer shall be subject to a late fee of [Insert Late Fee Amount] as well as any additional costs incurred to collect the outstanding balance.
4. Entire Agreement. This agreement, together with the purchase agreement, represents the entire understanding of the parties and supersedes all prior negotiations, understandings, and agreements between the parties.
5. Governing Law. This agreement shall be governed by and construed in accordance with the laws of the State of [Insert Governing State].
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.
Buyer Name: _____________________________
Buyer Signature: __________________________
Seller Name: _____________________________
Seller Signature: __________________________
Conclusion
In summary, a final payment agreement is a legal document that outlines the terms and conditions of the final payment to be made between a buyer and seller. Use the above sample agreement as a starting point to draft your final payment agreement, and ensure that all parties involved understand their obligations. Remember, having a well-drafted agreement is crucial for ensuring that everyone involved in the transaction is protected.