A memorandum of agreement for payment is an essential document when it comes to any business transaction involving payments. This agreement outlines the terms and conditions of the payment agreement between two parties, including the payment amount, payment schedule, and other important details.
Creating a memorandum of agreement for payment may seem daunting, but with the help of a sample, you can get started quickly and easily. Here is an overview of what should be included in a memorandum of agreement for payment, as well as a sample agreement to help guide you.
First, the memorandum should include the names of all parties involved in the payment agreement. This includes both the payer and the payee, as well as any other relevant parties, such as an intermediary or financial institution.
Next, the agreement should outline the amount of the payment and the payment schedule. This includes the frequency of payments, the due date for each payment, and the total amount owed.
The memorandum should also specify the method of payment, such as bank transfer, wire transfer, or check. Additionally, it should include any applicable fees associated with the payment method.
The agreement should also specify any consequences for late payments or non-payment, such as interest charges or legal action.
Here is a sample memorandum of agreement for payment:
MEMORANDUM OF AGREEMENT FOR PAYMENT
This Memorandum of Agreement (« Agreement ») is made and entered into on [DATE] between [PAYER NAME], located at [ADDRESS], and [PAYEE NAME], located at [ADDRESS].
The parties hereby agree as follows:
1. Payment Amount: [AMOUNT OF PAYMENT]
2. Payment Schedule: The payment shall be made in [NUMBER] installments, due on the [DATE] of every month, beginning on [DATE].
3. Method of Payment: [BANK TRANSFER/CHECK/WIRE TRANSFER]
4. Payment Fees: All associated fees shall be paid by the payee.
5. Late Payment: In the event that any payments are not made on time, a late fee of [AMOUNT] shall be charged per day until the payment is received in full.
6. Non-Payment: If payment is not received within [NUMBER] days of the due date, legal action may be taken.
In witness of their agreement to the terms and conditions set forth in this Agreement, the parties affix their signatures below:
[PAYER SIGNATURE]
[PAYER NAME]
[PAYEE SIGNATURE]
[PAYEE NAME]