Money is required for everybody everywhere, and nobody can survive without it in today’s world. Industries are set up for the production of certain goods. They face a problem with funds in hand because most of the money is used and is blocked.
Even public transport companies throughout the world are facing short of funds in running the business. Even most of the nations need funds for growth and the World Bank finances so many projects throughout the world. Most of the Governments run in fiscal deficits. Thus the importance of money is accepted throughout the world and taking loans/ overdrafts from financial institutions is also an accepted phenomenon in this world.
All this money is required to be refunded some day or other, with interest thereon. Some of the companies e.g. Enron could not refund the loan and also the interest thereof, and the company was declared ‘bankrupt.’ The companies and financial institutes could not recover any amount from them.
In such a case where there is no hope of receiving any payment, the banks/ financial institute at one time want to recover at least their capital investment from the company who had taken a loan against some property. In such cases, the financial companies want a one-time settlement, by waving the interest thereof.
The preliminary meetings are, therefore, scheduled between the company and financial institute representatives. A final settlement draft is written for finally making it as an agreement which includes the reason of coming to a peaceful mutual settlement, and both parties should agree to all the terms and the legal implications and clauses and sign the draft letter to make it binding and real.
A letter is therefore drafted for sending ‘Final settlement draft agreement’ letter from banks/financial institutions to the company, in that regard. Know how to write a letter with the sample and template is mentioned below.
Tips On Writing A Good Final Settlement agreement letter
- Clearly, mention the names of all involved parties
- Make certain the new terms and conditions of the settlement are simple to understand and clear
- Do not send the letter before double checking the facts
- Include all relevant dates in the agreement
- Do not forget to make both parties sign the agreement letter
Template
Use our free Final Settlement Agreement letter to help you get started
From,
______________
___________________
__________________
DD/MM/YYYY
To,
________
__________________
__________________
Subject: Settlement Agreement Letter
Parties to the agreement:
Creditor: _______(Creditor’s name)
Debtor: ______(Debtor’s name)
The final settlement agreement letter includes the reason of coming to a peaceful mutual settlement and that both parties should agree to all the terms and conditions and legal implications and clauses related to the agreement between the_______(Creditor’s name) and______(Debtor’s name).
The original amount due to be paid by the debtor is ________($ amount owed), which has not been paid for _______ (period in number of months) since _____(due date/month/year).
In light of the financial hardship faced by the debtor and as mutually agreed now, the creditor accepts a total of ______($ amount for settlement) as full and final settlement of the debt.
However, the debtor must make the full payment by ________(date of payment). Failure to make the payment on the scheduled date will result in the cancellation of the agreement, and this will make the creditor claim the entire payment.
________(Any other terms here)
Signatures
_______________
Sample Letter
Creditor: Henry Johnson.
Debtor: Fred Dhillon
Subject: Settlement Agreement Letter
Parties to the agreement:
Creditor: Henry Johnson.
Debtor: Fred Dhillon
The final settlement agreement letter includes the reason of coming to a peaceful mutual settlement and that both parties should agree to all the terms and conditions and legal implications and clauses of the agreement between the Creditor Henry Johnson and the Debtor Fred Dhillon.
The original amount due to be paid by the debtor is $ 25000, which has not been paid for 48 months that was due on 1.1.2014.
In light of the financial hardship faced by the debtor and as mutually agreed now, the creditor accepts a total of $ 20000 as the amount of full and final settlement of the debt.
However, the debtor must make the total payment by 1.6.2014 as the date of final payment. Failure to making the payment on the scheduled date will result in the cancellation of the agreement, and this will make the creditor claim the entire payment.
________(Any other terms here)
Signatures
International bank
Email Format
The following is the Email Format for Final Settlement Agreement Letter
From: name@email.com
To: name@email.com
Subject: Settlement Agreement Letter
Parties to the agreement:
Creditor:
Debtor:
The final settlement agreement letter includes the reason of coming to a peaceful mutual settlement and that both parties should agree to all the terms and conditions and legal implications and clauses.
The original amount due to be paid by the debtor is ________($ amount owed), which has not been paid for _______ (period in number of months) since _____(due date/month/year).
In light of the financial hardship faced by the debtor and as mutually agreed now, the creditor accepts a total of ______($ amount for settlement) as full and final settlement of the debt.
However, the debtor must make the total payment by ________(date of payment). Failure to making the payment on the scheduled date will result in the cancellation of the agreement and this will make the creditor claim the entire payment.
________(Any other terms here)
Signatures
___________