Late Payment Agreement

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This Late Payment Agreement (“Agreement”) is entered into on this 1st of January, 2050 by and between:

• Creditor: [Your Company Name]
  Address: [Your Company Address]
  Contact Information: [Your Company Email] | [Your Company Number]

• Debtor: ABC Contractors, Inc.
  Address: 456 Project Drive, Townsville, State, 67890
  Contact Information: billing@abccontractors.com | (555) 987-6543

(Hereinafter referred to collectively as the “Parties”).

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1. PURPOSE OF THE AGREEMENT

The purpose of this Agreement is to formalize the terms under which ABC Contractors, Inc. agrees to address overdue payments owed to [Your Company Name] for goods and services provided.

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2. OUTSTANDING BALANCE

The Debtor acknowledges and agrees that they owe the Creditor a total sum of $10,000.00 (Ten Thousand Dollars) as of January 1, 2050.

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3. PAYMENT TERMS

The Debtor agrees to repay the outstanding balance as follows:

• Payment Amount: $2,000.00 per month

• Due Date: The 15th of each month, starting February 15, 2050

• Payment Method: Electronic Bank Transfer to Account Number: 123456789, Routing: 987654321

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4. LATE PAYMENT FEES

If the Debtor fails to make a payment by the agreed due date, the following penalties will apply:

1. A late payment fee of 5% of the overdue amount; or

2. A fixed penalty of $100.00, whichever is greater.

The late payment fee will be assessed after 10 days of the missed due date.

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5. CONSEQUENCES OF NON-PAYMENT

If the Debtor fails to comply with the payment terms outlined in this Agreement, the Creditor reserves the right to:

1. Report the default to credit reporting agencies;

2. Suspend or terminate any ongoing contracts, deliveries, or services.

3. Pursue legal action to recover the outstanding balance, including reasonable attorney’s fees and court costs;

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6. NO WAIVER

The Creditor's failure to enforce any provision of this Agreement shall not constitute a waiver of its rights to enforce the same provision in the future.

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7. MODIFICATION OF AGREEMENT

Any modifications to this Agreement must be made in writing and signed by both Parties.

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8. GOVERNING LAW

This Agreement shall be governed by and construed by the laws of the State of New York, without regard to conflicts of law principles.

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9. ACKNOWLEDGMENT

Both Parties confirm that they have read, understood, and agree to the terms and conditions of this Late Payment Agreement.

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IN WITNESS WHEREOF,

The Parties have executed this Late Payment Agreement on this 1st day of January 2050.

Name: [Your Name]
Title: Finance Manager, [Your Company Name]
Date: January 1, 2050

Name: Jane Smith
Title: Accounts Payable Manager, ABC Contractors, Inc.
Date: January 1, 2050

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