Final Payment Agreement Template for Singapore

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Final Payment Agreement

"Need a Final Payment Agreement under Singapore law to document the final payment of SGD 250,000 to our software development vendor, including mutual releases and confidentiality provisions, with payment to be made by March 15, 2025."

Document background
A Final Payment Agreement is utilized when parties need to formally document the terms of a final payment and conclude their contractual obligations. This agreement is particularly relevant in Singapore's business environment, where it provides legal certainty under local contract law. The document typically follows completion of services, delivery of goods, or achievement of specific milestones, and includes key details such as payment amount, timing, method of payment, and mutual releases. It serves as crucial evidence of settlement and helps prevent future disputes by clearly documenting the parties' agreement regarding final payment terms.
Suggested Sections

1. Parties: Identification and details of all parties involved in the agreement

2. Background: Context of the agreement, including reference to original contract and payment history

3. Definitions: Key terms used throughout the agreement

4. Payment Terms: Final payment amount, method, and timing

5. Release Provisions: Mutual release of claims upon payment

6. Governing Law: Specification of Singapore law as governing law

Optional Sections

1. Confidentiality: Provisions for keeping payment terms confidential, used in sensitive commercial arrangements

2. Tax Provisions: Treatment of taxes related to the final payment, used when tax implications need clarification

3. Dispute Resolution: Specific dispute resolution mechanisms, used when parties want to specify alternative dispute resolution methods

4. Currency Provisions: Currency specification and exchange rate provisions, used for international payments

Suggested Schedules

1. Payment Schedule: Detailed breakdown of payment if made in installments

2. Original Contract Reference: Copy or summary of original contract terms

3. Payment History: Record of previous payments made

4. Bank Details: Banking information for final payment transfer

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

Industries

Contract Act (Cap. 53): Primary legislation governing contract formation, validity, and enforcement in Singapore

Unfair Contract Terms Act (Cap. 396): Regulates unfair terms in contracts and limits the extent to which civil liability can be excluded or restricted

Electronic Transactions Act (Cap. 88): Governs electronic transactions and digital signatures, relevant for electronic payment agreements

Payment Services Act 2019: Regulates payment systems and payment service providers in Singapore

Currency Act (Cap. 69): Governs the use of currency and legal tender in Singapore

Limitation Act (Cap. 163): Sets time limits for bringing legal actions and enforcing payment obligations

Insolvency, Restructuring and Dissolution Act 2018: Covers insolvency proceedings and debt restructuring, relevant for payment default scenarios

Companies Act (Cap. 50): Relevant when dealing with corporate entities in payment agreements

Goods and Services Tax Act (Cap. 117A): Governs GST implications on payments and transactions

Income Tax Act (Cap. 134): Covers tax implications of payments and settlements

Mediation Act 2017: Framework for mediation proceedings in case of payment disputes

Arbitration Act (Cap. 10): Governs arbitration proceedings for dispute resolution

Supreme Court of Judicature Act: Establishes jurisdiction of courts for contract enforcement and disputes

Exchange Control Act: Regulates foreign exchange transactions and international payments

UN Convention on International Settlement Agreements: International framework for settlement agreements (Singapore Convention on Mediation)

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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