Debt Assignment and Assumption Agreement - Form

DEBT ASSIGNMENT AND ASSUMPTION
AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:

This Debt Assignment and Assumption Agreement (the "Agreement") is entered into this _______ day of _____________________, 20_____ at the City/Municipality of _____________________, Province of ________, by and between:

________, Filipino, of legal age, and with address at ________, hereinafter referred to as the "Assignor"

- and -

________, Filipino, of legal age, and with address at ________, hereinafter referred to as the "Assignee"

- and -

________, Filipino, of legal age, and with address at ________, hereinafter referred to as the "Creditor"

WITNESSETH THAT:

WHEREAS, Assignor owes Creditor the amount of ________ (₱________) (the "Debt") under the debt contract dated ________ (the "Debt Contract"), herein attached to and made an integral part of this Agreement;

WHEREAS, Assignee is willing to assume the obligation of paying the entire Debt;

WHEREAS, Creditor is willing to accept the assignment of the Debt to Assignee;

NOW THEREFORE, for and in consideration of the foregoing premises, which premises shall be in integral part of this Agreement, and of the mutual covenants and agreements hereinafter stated, the parties hereto agree as follows:

I. ASSIGNMENT

Assignor hereby assigns, transfers, and conveys, and Assignee hereby accepts, the debt to Creditor amounting to ________ (₱________) and all incurred interest and penalties as of the date of this Agreement. The interest and penalties that have been incurred as of the date of this Agreement amounts to ________ (₱________).

II. JOINT LIABILITY AND ASSUMPTION

Assignor and Assignee will become solidary debtors for the Debt, as provided in this Agreement, to Creditor. Creditor shall initially seek repayment from Assignee and, if Assignee defaults, Creditor may seek full repayment from Assignor.

III. PAYMENT TERMS

The payment terms will be modified and Assignee will pay Creditor as follows:

________

IV. BINDING EFFECT

This Agreement shall be valid and binding upon all of the Parties' successors, transferees, heirs, and assigns.

V. RELEASE OF ASSIGNOR

Upon full payment of the Debt by Assignee in accordance with the payment terms set forth in this Agreement, Assignor shall be fully and finally released and discharged from any and all obligations and liabilities arising from or in connection with the Debt and the Debt Contract.

VI. REPRESENTATIONS AND WARRANTIES

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VII. GOVERNING LAW

This Agreement shall be governed by, construed, and interpreted in accordance with the laws of the Republic of the Philippines.

VIII. DISPUTE RESOLUTION

Any dispute, controversy, or claim arising out of or in connection with this Agreement shall first be settled amicably by the Parties through good faith negotiations. Should the Parties fail to reach an amicable settlement, the dispute shall be submitted to the exclusive jurisdiction of the proper courts of the Philippines.

IX. COUNTERPARTS

This Agreement may be executed in counterparts, all of which constitute a single agreement. If the dates set forth at the signatures of this document are different, the Agreement shall be considered effective as of the date that all the Parties signed the Agreement.

X. SEVERABILITY

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XI. CUMULATIVE RIGHTS

The rights of the Parties under this Agreement and the law are cumulative and shall not be construed as exclusive unless otherwise required by law.

XII. HEADINGS

Headings are for convenience only and do not affect the interpretation of this Agreement.

XIII. AMENDMENTS AND MODIFICATIONS

This Agreement may be amended only by a written instrument signed and agreed upon by the Parties.

IN WITNESS WHEREOF, the Parties have hereunto affixed their signature on the date and at the place stated above.

________
Assignor

________
Assignee

________
Creditor

ACKNOWLEDGMENT

Republic of the Philippines )
Province of ________________________ )
City or Municipality of ________________________ )S.S.

BEFORE ME, a Notary Public, for and in the City or Municipality of ________________________, ________________________, this _______ day of ________________________, 20______, personally appeared the following persons:

1. ________, with the following competent proof of identification: Driver's License with number ________ which expires on ________ ;

2. ________, with the following competent proof of identification: Driver's License with number ________ which expires on ________

3. ________, with the following competent proof of identification: Driver's License with number ________ which expires on ________

All known to me and to me known to be the same persons who executed the foregoing DEBT ASSIGNMENT AND ASSUMPTION AGREEMENT and they acknowledged to me that the same is their free and voluntary act and deed.

IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed my notarial seal on the date and at the place written above.

Doc. No. _________;
Page No. ________;
Book No. ________;
Series of ________.