"Payment Agreement Template"

What Is a Payment Agreement?

A Payment Agreement is a legally binding contract between a lender and a borrower through which the parties agree to a mutually acceptable repayment schedule. The document then serves as a receipt and includes the details of the loan, interest rates, and payment periods.

Alternate Names:

  • Payment Contract;
  • Installment Agreement.

The agreement generally serves to ensure that the payment for the product or service rendered is made on time and in full. Failure to abide by the terms of the agreement counts as a breach of contract. Drafting a Payment Agreement and sticking to its terms will help you stay protected throughout the duration of the loan.

Use our online form builder to make a personalized Payment Agreement template according to your own requirements or download a ready-made form through the link below.

ADVERTISEMENT

Payment Agreement - What to Include?

The agreement has to contain several specific sections that are vital for the protection of both parties in the event of a dispute or default. These include:

  1. Loan amount.
  2. Payment schedule.
  3. Release and indemnification.
  4. Procedures in case of default.
  5. Representations and warranties.
  6. Severability.
  7. Legal fees.
  8. Governing state law.

How to Write a Contract Agreement for Payment?

Ready to draft your contract but unsure of what to include? Below are the steps to preparing a secure Payment Agreement:

  1. Start with a blank template and begin gathering the necessary information. The date upon which the agreement is drafted will be the date it comes into effect. A grace period, if granted, should be specified as well.
  2. Insert the details of both the lender and the borrower, including their full legal names and mailing addresses.
  3. Define the payment details. This includes specifying the means by which the payments will be made, the frequency with which they will be paid, and the exact terms of payment, including information about the amount, warranties, and representations. Specify the conditions under which a payment is considered late or unsatisfactory and add information on how the parties will resolve any disputes.
  4. Draft a payment plan with the exact dates, amounts, and fees for late payment.
  5. Have the other party sign the agreement and provide your own signature.

Not the form you need? Check out these related templates:

ADVERTISEMENT

Download "Payment Agreement Template"

Download PDF

Create Document

Rate (4.3 / 5) 17 votes
Payment Agreement
This ​ P ayment Agreement (hereinafter referred to as the “Agreement”) is entered into
as of ___________________ by and between _______________________________,
with a mailing address of ________________________________________________
_____________________________________________________________________
(hereinafter referred to as the “Debtee”) and
_ ______________________________,
with a mailing address of ________________________________________________
_____________________________________________________________________
(hereinafter referred to as the “Debtee”), collectively referred to as the “Parties”, both
of whom agree to be bound by this Agreement.
WHEREAS, the Debtor owes the Debtee a certain debt; and
WHEREAS, the Debtee and Debtor desire to enter into an agreement to
memorialize this debt and an associated payment plan.
NOW THEREFORE, in consideration of the mutual promises, covenants, and
conditions contained herein, the Parties agree as follows:
1. Debt Amount. The Debtor agrees they owe the Debtee $ ___________________
(hereinafter referred to as the “Debt”).
2. Pa​ y ment Plan.​ The Debt shall be paid in full by ___________________________.
The Parties agree to the following Payment Plan:
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
The Debtor represents and warrants that this Payment Plan was developed in such a
manner that they can make the required payments without causing further debt or
detriment.
Payment Agreement
This ​ P ayment Agreement (hereinafter referred to as the “Agreement”) is entered into
as of ___________________ by and between _______________________________,
with a mailing address of ________________________________________________
_____________________________________________________________________
(hereinafter referred to as the “Debtee”) and
_ ______________________________,
with a mailing address of ________________________________________________
_____________________________________________________________________
(hereinafter referred to as the “Debtee”), collectively referred to as the “Parties”, both
of whom agree to be bound by this Agreement.
WHEREAS, the Debtor owes the Debtee a certain debt; and
WHEREAS, the Debtee and Debtor desire to enter into an agreement to
memorialize this debt and an associated payment plan.
NOW THEREFORE, in consideration of the mutual promises, covenants, and
conditions contained herein, the Parties agree as follows:
1. Debt Amount. The Debtor agrees they owe the Debtee $ ___________________
(hereinafter referred to as the “Debt”).
2. Pa​ y ment Plan.​ The Debt shall be paid in full by ___________________________.
The Parties agree to the following Payment Plan:
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
The Debtor represents and warrants that this Payment Plan was developed in such a
manner that they can make the required payments without causing further debt or
detriment.
Payments shall be made to the Debtee in accordance with the Payment Plan via
___________________. Unpaid principal after the due date shall accrue interest at the
rate of _____%​
m onthly until paid in full.
3. Release and Indemnification. By entering into this Payment Plan, the Debtee
agrees to release the Debtor from any previous claims, actions and/or liabilities due to
the Debt. The Parties agree that this Agreement does not release the Debtor of any
obligations to pay the Debt.
4. Default. If the Debtor defaults on their payments and fails to cure said default
within a reasonable amount of time, the Debtee will have the option to declare the
entire remaining amount of Debt due and payable upon reaching _____ days.
5. Representations and Warranties. ​ B oth Parties represent that they are fully
authorized to enter into this Agreement. The performance and obligations of either
Party will not violate or infringe upon the rights of any third-party or violate any other
agreement between the Parties, individually, and any other person, organization, or
business or any law or governmental regulation.
6. Severability. In the event that any provision of this Agreement is deemed invalid or
unenforceable, in whole or in part, that part shall be severed from the remainder of the
Agreement and all other provisions should continue in full force and effect as valid
and enforceable.
7. Waiver. The failure by either of the Parties to exercise any right, power or privilege
under the terms of this Agreement will not be construed as a waiver of any subsequent
or further exercise of that right, power or privilege or the exercise of any other right,
power or privilege.
8. Legal Fees. ​ I n the event of a dispute resulting in legal action, the successful party
will be entitled to its legal fees, including, but not limited to its attorneys’ fees,
collection fees and the like.
9. Legal and Binding Agreement. This Agreement is legal and binding between the
Parties as stated above. The Parties each represent that they have the authority to enter
into this Agreement.
10. Governing Law and Jurisdiction. ​ T he Parties agree that this Agreement shall be
governed by ____________________ law​
.
(State)
11. Entire Agreement. The Parties acknowledge and agree that this Agreement
represents the entire agreement between the Parties. In the event that the Parties desire
to change, add, or otherwise modify any terms, they shall do so in writing to be signed
by both parties.
The Parties agree to the terms and conditions set forth above as demonstrated by their
signatures as follows:
DEBTEE
DEBTOR
Name: ​ _ ________________________
Name: ​ _ ________________________
Signed: ​ _ _______________________
Signed: ​ _ _______________________
Date: __________________________
Date: __________________________
Page of 3