Agreement To Compromise Debt
FOR VALUE RECEIVED, the undersigned being a creditor of [Company name] 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 thepresent debt due is $[numerical dollar amount].
2. The parties agree that the undersigned shall accept thesum of $[numerical dollar amount] 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 inthe manner following: [clear description]
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 [numerical] day of [Month], [Year].
[clearly print name after signature]