The Promise to Pay Contract is a crucial legal instrument in South African commercial and financial transactions, used when a party needs to formally acknowledge a debt and establish structured repayment terms. This document is commonly utilized in situations involving loan restructuring, settlement of outstanding accounts, or formalizing informal lending arrangements. It must comply with the National Credit Act 34 of 2005 and other relevant South African legislation, particularly when involving consumer debtors. The agreement typically includes details about the origin of the debt, payment schedules, interest calculations, and default provisions. It serves both as a debt acknowledgment and a new payment arrangement, providing creditors with a strong legal foundation for future enforcement if necessary.

1. Parties: Identification and details of the creditor and debtor, including full legal names, registration/ID numbers, and physical addresses

2. Background: Context of the debt, including its origin, original amount, and any relevant history of the debt

3. Definitions: Key terms used in the agreement, including 'Debt Amount', 'Payment Date', 'Interest Rate' and other relevant terms

4. Acknowledgment of Debt: Clear statement of the debtor acknowledging and admitting liability for the specified amount

5. Payment Terms: Detailed payment arrangements including total amount, installment amounts, payment dates, and payment method

6. Interest: Interest rate applicable, how it's calculated, and when it applies

7. Default Provisions: Consequences of missing payments, acceleration clauses, and remedies available to the creditor

8. Domicilium Citandi et Executandi: Chosen addresses for legal notices and court documents

9. General Terms: Standard contractual provisions including entire agreement clause, amendment procedures, and governing law

10. Signatures: Execution clause and signature blocks for all parties, including witnesses