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Contents of a Debt Settlement Agreement Name and address of the creditor. Name and address of the debtor. Original loan amount and its date. Rate of interest.
Those requirements include: An offer. This is what one party proposes to do, pay, etc. ... Acceptance. ... Valid consideration. ... Mutual assent. ... A legal purpose. ... A settlement agreement must also not be "unconscionable." This means that it cannot be illegal, fraudulent, or criminal.
However, for a settlement agreement to be legally binding, you must receive independent legal advice from a qualified solicitor or union representative; without this, the agreement will not be legally binding. Paying for this legal advice is typically met by the employer.
Include a paragraph explaining your circumstances and details of your financial situation that you want the creditor to take into account. Enter the amount which you can afford to pay. and I want to offer this as full and final settlement of the account.
The agreement should set forth what money is being paid for, i.e., the type of damages, as well as the claims it is being paid on. If some damages are taxable and some are not, the settlement agreement should set out, in as much detail as possible, the proportions and rationale.