Simple Promise To Pay Agreement for the United Kingdom

Simple Promise To Pay Agreement Template for England and Wales

A Simple Promise To Pay Agreement is a legally binding document under English and Welsh law that formalizes a debt obligation between parties. It clearly sets out the amount owed, payment terms, and conditions under which the debt must be repaid. The agreement provides a structured framework for debt repayment while offering legal protection for both the creditor and debtor. It includes essential elements such as payment schedules, interest provisions (if applicable), and consequences of default.

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What is a Simple Promise To Pay Agreement?

The Simple Promise To Pay Agreement is commonly used when there is a need to formally document a debt obligation between parties in England and Wales. This agreement is particularly useful when informal arrangements need to be formalized or when parties wish to create a clear record of debt obligations. The document typically includes specific details about the amount owed, payment schedule, interest rates (if applicable), and consequences of default. It provides legal certainty and protection for both creditor and debtor while ensuring compliance with English contract law principles.

What sections should be included in a Simple Promise To Pay Agreement?

1. Parties: Identifies and defines the parties to the agreement

2. Background: Explains context and circumstances leading to the agreement

3. Definitions: Defines key terms used in the agreement

4. Amount Owed: Specifies the exact sum to be paid

5. Payment Terms: Details payment schedule, method, and deadlines

6. Signatures: Execution block for parties to sign

What sections are optional to include in a Simple Promise To Pay Agreement?

1. Interest: Details interest rates and calculations if applicable - use when interest is to be charged on the debt

2. Security: Details any collateral or security for the debt - use when the debt is secured against assets

3. Default Provisions: Consequences of failing to pay - use when specific default terms are required

4. Early Payment Provisions: Terms for early repayment - use when early repayment is permitted

What schedules should be included in a Simple Promise To Pay Agreement?

1. Payment Schedule: Detailed breakdown of payment dates and amounts

2. Evidence of Debt: Copies of relevant documentation proving the debt

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

England and Wales

Publisher

Genie AI

Document Type

Payment Agreement

Sector

Banking

Cost

Free to use
Industries

Law of Property (Miscellaneous Provisions) Act 1989: Primary legislation governing written documents in England and Wales, particularly Section 1 regarding formal requirements for written agreements

Limitation Act 1980: Sets time limits for enforcing debts, generally allowing 6 years for simple contracts from the date of breach

Consumer Credit Act 1974: Regulates consumer credit agreements and provides protection for consumer debtors. Applies if one party is a consumer

Unfair Contract Terms Act 1977: Ensures contract terms are fair and reasonable, particularly important when dealing with consumer agreements

Doctrine of Consideration: Common law principle requiring that valid consideration must be given in exchange for the promise to pay

Capacity to Contract: Common law principle ensuring all parties have the legal capacity to enter into a binding agreement

Intention to Create Legal Relations: Common law principle requiring clear demonstration that parties intend to be legally bound by the agreement

Doctrine of Privity of Contract: Common law principle determining who has the right to enforce the contract, typically limiting enforcement rights to the contracting parties

Teams

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