UK Agreement to Compromise Debt
If a customer owes you money and you are willing to accept payment of a lesser sum in order to settle the debt, you can sign this Agreement to Compromise Debt with the customer.
- The creditor agrees to accept the lesser sum from the debtor as payment in full.
- The agreement is conditioned upon the provision that the sum must be paid within a specified time period.
- If the customer fails to do so, the creditor will have the right to sue the debtor for the full amount of the debt.
- The agreement is governed by English law and can be used throughout the United Kingdom.
If your business extends credit to customers, you should have a copy of the UK Agreement to Compromise Debt. Download yours now.
Last Updated: 14-Apr-2016