Late Payment Agreement
This Late Payment Agreement (“Agreement”) is entered into on this 1st of January, 2050 by and between:
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”).
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.
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.
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
4. LATE PAYMENT FEES
If the Debtor fails to make a payment by the agreed due date, the following penalties will apply:
A late payment fee of 5% of the overdue amount; or
A fixed penalty of $100.00, whichever is greater.
The late payment fee will be assessed after 10 days of the missed due date.
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:
Report the default to credit reporting agencies;
Suspend or terminate any ongoing contracts, deliveries, or services.
Pursue legal action to recover the outstanding balance, including reasonable attorney’s fees and court costs;
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.
7. MODIFICATION OF AGREEMENT
Any modifications to this Agreement must be made in writing and signed by both Parties.
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.
9. ACKNOWLEDGMENT
Both Parties confirm that they have read, understood, and agree to the terms and conditions of this Late Payment Agreement.
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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