DEBT SETTLEMENT AGREEMENT
THIS DEBT SETTLEMENT AGREEMENT (this "Agreement") is made on ________ (the "Effective Date"), by and between:
(1) ________, an individual bearing Means of Identification No. ________ and of the following address:
________
(hereinafter referred to as the "Debtor", which expression shall where the context so admits include his/her successors-in-title, personal representatives, heirs and assigns); and
AND
(2) ________, an individual bearing Means of Identification No. ________ and of the following address:
________
(hereinafter referred to as the "Creditor", which expression shall where the context so admits include his/her successors-in-title, personal representatives, heirs and assigns).
The Debtor and the Creditor are hereinafter referred to individually as a "Party" and collectively as the "Parties".
RECITALS
A. By virtue of the ________ executed by the Parties on ________ (the "Original Agreement"), the Debtor became indebted to the Creditor in the outstanding sum of \u20a6________ (________) (the "Outstanding Debt").
B. The Debtor has represented that it is presently unable to discharge the Outstanding Debt in full, and the Parties have mutually agreed that the Outstanding Debt shall be deemed fully and finally settled upon the Debtor paying to the Creditor the sum of \u20a6________ (________) (the "Settlement Sum") in accordance with the terms and conditions of this Agreement.
C. This Agreement amends, modifies and supersedes the Original Agreement and all prior agreements, arrangements and understandings between the Parties in relation to the Outstanding Debt.
NOW THEREFORE, in consideration of the mutual covenants and promises herein contained and other good and valuable consideration (the receipt and sufficiency of which are hereby acknowledged), the Parties hereby agree as follows:
1. DEBT SETTLEMENT
1.1 The Parties agree and acknowledge that the Outstanding Debt as at the Effective Date is \u20a6________ (________), and that the Debtor is presently unable to repay the entire sum as originally agreed.
1.2 In full and final settlement of the Outstanding Debt, the Creditor agrees to accept payment of the Settlement Sum of \u20a6________ (________), provided that the Debtor complies fully with the terms of this Agreement.
2. SETTLEMENT TERMS
2.1 The Debtor shall pay the Settlement Sum of \u20a6________ (________) on or before ________ (the "Payment Date").
2.2 The Settlement Sum shall be paid by ________ to the following account of the Creditor: Account Name: ________; Account Number: ________; Bank: ________.
2.3 If the Creditor does not receive the Settlement Sum in full on or before the Payment Date, the concession granted under this Agreement shall immediately lapse, and the Creditor shall be entitled to demand and recover the entire Outstanding Debt of \u20a6________, less any sums already received, together with interest thereon at the rate of ________% per annum and all costs of recovery.
2.4 The Parties agree that the due and timely payment of the Settlement Sum in accordance with this Agreement shall constitute full and final discharge of the Outstanding Debt. Upon receipt of the Settlement Sum, the Creditor shall, within ________ days, issue to the Debtor a written acknowledgement and release confirming that the Outstanding Debt has been settled and discharged in full.
2.5 Upon such discharge, the Debtor, his/her heirs, personal representatives, authorised representatives and agents shall be released and forever discharged from all further disputes, liabilities, claims, demands and obligations relating to the Outstanding Debt, save for actions necessary to enforce the terms of this Agreement.
3. ACKNOWLEDGEMENT OF DEBT AND CONSENT TO JUDGMENT
3.1 The Debtor hereby acknowledges the Outstanding Debt and agrees that, in the event of default under Clause 2.3, the Creditor shall be at liberty to enforce its rights by all lawful means, including instituting proceedings before a court of competent jurisdiction in Nigeria.
3.2 Nothing in this Agreement shall be construed as a novation of the Original Agreement save to the extent expressly provided herein.
4. CONFIDENTIALITY
4.1 The Parties agree that the terms of this Agreement are confidential, and no Party shall disclose any part of this transaction to any third party, save where such disclosure is required by law, by an order of a court or regulatory authority of competent jurisdiction, or to a Party's professional advisers under a duty of confidentiality.
4.2 Any processing of personal data of the Parties in connection with this Agreement shall be carried out in accordance with the Nigeria Data Protection Act, 2023.
5. REPRESENTATIONS AND WARRANTIES
5.1 Each Party represents and warrants that it has the full power, authority and legal capacity to enter into and perform its obligations under this Agreement.
5.2 The Debtor represents and warrants that all information provided regarding the Outstanding Debt and its financial circumstances is true, accurate and complete in all material respects.
5.3 The Parties acknowledge that they have entered into this Agreement freely and voluntarily, without any undue influence, coercion, misrepresentation or duress, and that each has had the opportunity to obtain independent legal advice prior to executing this Agreement.
6. DISPUTE RESOLUTION
6.1 The Parties shall use their best endeavours to amicably resolve any dispute, controversy or claim arising out of or in connection with this Agreement through good-faith negotiation.
6.2 Where such dispute is not resolved within ________ days, the same shall be referred to mediation in accordance with the laws applicable in ________, failing which either Party may refer the dispute to the courts of competent jurisdiction in Nigeria.
7. MISCELLANEOUS
(I) Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the Federal Republic of Nigeria, and the Parties submit to the jurisdiction of the courts sitting in ________.
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(III) Cumulative Rights: The rights of the Parties under this Agreement are cumulative and shall not be construed as exclusive of any other right or remedy save as otherwise provided by law.
(IV) Headings: Headings in this Agreement are for convenience only and shall not affect the construction or interpretation of its terms.
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(VI) Severability: If any provision of this Agreement is held to be unenforceable or invalid, the remaining provisions shall continue in full force and effect.
(VII) Entire Agreement: This Agreement constitutes the entire agreement between the Parties relating to its subject matter and supersedes all prior agreements, representations and understandings.
(VIII) Amendment: No variation or amendment of this Agreement shall be effective unless made in writing and signed by or on behalf of both Parties.
(IX) Further Assurance: The Parties shall execute and deliver all such documents and take all such actions as may be necessary or incidental to give full effect to the provisions of this Agreement.
(X) Counterparts: This Agreement may be executed in any number of counterparts, each of which when executed shall constitute an original, and all of which together shall constitute one and the same agreement.
IN WITNESS WHEREOF the Parties have executed this Agreement on the day and year first above written.
SIGNED by the within-named Debtor:
_______________________
________
in the presence of:
Name: ________
Address: ________
Occupation: ________
Signature: ...........................................................................................................
SIGNED by the within-named Creditor:
_______________________
________
in the presence of:
Name: ________
Address: ________
Occupation: ________
Signature: ...........................................................................................................