Acknowledgment of Debt

ACKNOWLEDGEMENT OF DEBT

This is a written contract that states that one person owes another an amount of money. It also indicates how the debt will be repaid.

1    THE PARTIES

1.1    The Creditor

Name & Surname:
ID/Passport Number: .  If a Passport, issued by:
Address (the address acts as the domicilium citandi et executandi): 

1.2    The Debtor

Name & Surname:
ID/Passport Number: .  If a Passport, issued by:
Address (the address acts as the domicilium citandi et executandi): 

2    THE DEBT

The Debtor agrees and acknowledges that:

2.1    the debt arose due to the following facts and reasons:

2.2    he/she is indebted to the Creditor and has an obligation to repay an outstanding debt amount of R, and has agreed to an interest rate of % per month year from the date that the obligation became due and payable.

3    PARTICULARS OF THE DEBTOR'S FINANCIAL SITUATION

3.1    The Debtor's weekly monthly income is R and his/her expenses for that period are R.
3.2    The Debtor has: 
3.2.1    had the following court orders made against him/her;  or 
3.2.2    entered into the following agreements, 
for the payment of debts and costs in instalments:

4    REPAYMENT OF THE DEBT

4.1    The Debtor agrees to repay the outstanding debt amount:
4.1.1    in instalments of R per week month year ;  and
4.1.2    over a period of weeks months years ;  and
4.1.3    starting on .
4.2    After payment of the first instalment, all further instalments will be paid every consecutive period stated in clause ‎4.1 on the same day of the relevant period (or the first business day thereafter if payment cannot be made on that day), until the outstanding debt amount has been repaid in full.
4.3    Payment must be made directly into the following Bank Account:

Bank:
Branch Code:
Account Number:
Account Type:
Account Holder:

5    DEFAULT & FAILURE TO PAY

5.1    The Debtor agrees to repay the outstanding debt amount. 
5.2    Should the Debtor fail to honour the terms of this agreement by not making payment on the due date/s, the full balance of the outstanding debt amount, as well as all legal costs becomes due and payable.
5.3    The Creditor may then proceed to demand immediate payment of the full balance of the outstanding debt amount, and legal costs.
5.4    Should the Debtor fail to make immediate payment of the full balance of the outstanding debt amount, the Creditor may proceed to apply for judgement in the relevant Magistrate’s Court.
5.5    The Debtor consents to judgement in favour of the Creditor, for the outstanding amount including all legal costs. 

6    ADDITIONAL TERMS

6.1    This document represents the entire agreement between the Creditor and the Debtor. 
6.2     No changes in the terms, or obligation in terms of agreement (novation) or cancellation will have any effect, unless made in writing and agreed to by both the Creditor and the Debtor. 
6.3    All correspondence and legal notices will be served at the address nominated by the Creditor and the Debtor, as their domicilium citandi et executandi.
6.4    The Debtor abandons the benefits of legal exception of no value received, revision of account, mistakes in calculation of the outstanding amount, and no reason for obligation to repay the outstanding amount.
6.5    The Debtor agrees that he/she was fully aware of and understood all the terms and conditions set out in this acknowledgement, at its commencement.