This debt settlement agreement is between , an individual a(n) (the "Creditor"), and , an individual a(n) (the "Debtor").
The Creditor and the Debtor are parties to a loan agreement promissory note dated (the "Original Agreement"), a copy of which is attached to this agreement as Exhibit A.
Under the Original Agreement, the Creditor loaned the original principal amount of $ to the Debtor. To date, the Debtor has made payments to the Creditor totaling $ . The Debtor currently owes the Creditor $ , which is the original amount, less payments made, plus accrued interest of $ (the "Outstanding Debt").
The Outstanding Debt constitutes the entire outstanding indebtedness of the Debtor to the Creditor as of the effective date of this agreement, including principal, interest to the date of this agreement, and costs.
The parties wish to resolve the dispute between them and to settle the subject matter of the dispute and all claims that could be made in connection with it, with no party admitting any liability to the other party, except for the obligations in this agreement.
The parties therefore agree as follows:
1. PAYMENTS.
2. CREDITOR'S RELEASE.
3. CREDITOR'S REPRESENTATIONS.
The Creditor states that:
The parties' obligation to complete the transactions under this agreement is subject to these statements of fact being true at the effective date described in section 13 below. Each party will indemnify the other against all claims arising from the statements of fact being incorrect.
4. EFFECTIVE TIME OF RELEASES.
The releases described above become effective immediately on the effective date of this agreement (as described in section 13 below) and the payment of the Settlement Amount by the Debtor.
5. GOVERNING LAW.
6. AMENDMENTS.
No amendment to this agreement will be effective unless it is in writing and signed by a party or its authorized representative.
7. COUNTERPARTS; ELECTRONIC SIGNATURES.
8. SEVERABILITY.
If any one or more of the provisions contained in this agreement is, for any reason, held to be invalid, illegal, or unenforceable in any respect, that invalidity, illegality, or unenforceability will not affect any other provisions of this agreement, but this agreement will be construed as if those invalid, illegal, or unenforceable provisions had never been contained in it, unless the deletion of those provisions would result in such a material change so as to cause completion of the transactions contemplated by this agreement to be unreasonable.
9. NOTICES.
10. WAIVER.
No waiver of a breach, failure of any condition, or any right or remedy contained in or granted by the provisions of this agreement will be effective unless it is in writing and signed by the party waiving the breach, failure, right, or remedy. No waiver of any breach, failure, right, or remedy will be deemed a waiver of any other breach, failure, right, or remedy, whether or not similar, and no waiver will constitute a continuing waiver, unless the writing so specifies.
11. ENTIRE AGREEMENT.
This agreement constitutes the final agreement of the parties. It is the complete and exclusive expression of the parties' agreement about the subject matter of this agreement. All prior and contemporaneous communications, negotiations, and agreements between the parties relating to the subject matter of this agreement are expressly merged into and superseded by this agreement. The provisions of this agreement may not be explained, supplemented, or qualified by evidence of trade usage or a prior course of dealings. Neither party was induced to enter this agreement by, and neither party is relying on, any statement, representation, warranty, or agreement of the other party except those set forth expressly in this agreement. Except as set forth expressly in this agreement, there are no conditions precedent to this agreement's effectiveness.
12. HEADINGS.
The descriptive headings of the sections and subsections of this agreement are for convenience only, and do not affect this agreement's construction or interpretation.
13. EFFECTIVENESS.
This agreement will become effective when all parties have signed it. The date this agreement is signed by the last party to sign it (as indicated by the date associated with that party's signature) will be deemed the date of this agreement.
14. NECESSARY ACTS; FURTHER ASSURANCES.
Each party shall use all reasonable efforts to take, or cause to be taken, all actions necessary or desirable to consummate and make effective the transactions this agreement contemplates or to evidence or carry out the intent and purposes of this agreement.
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Each party is signing this agreement on the date stated opposite that party's signature.
| Date:_______________________________________ | By:____________________________________________________________ |
| Name: | |
| Title: | |
| Date:_______________________________________ | By:____________________________________________________________ |
| Name: | |
| Title: |
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EXHIBIT A
Attach original agreement