Release of Debt for Less
Release of Debt for Less
This Release of Debt Agreement (the "Agreement") is intended as a settlement and release effective as of the date of signature below (the "Effective Date") between ("Borrower") and ("Lender") (collectively referred to as the "Parties").
A dispute has arisen between the Parties regarding a promissory note dated for the principal sum of $ (the "Note").
Contingent upon fulfillment of the settlement requirements set forth in this Agreement, each Party, for itself and for its heirs, successors, and assigns, voluntarily releases the other Party and its heirs, successors, and assigns from any and all actions, causes of action, debts, bills, demands, damages, costs, expenses (including attorneys' fees), liabilities, or other losses known or unknown, which may presently exist or later arise, regarding the Note. This Agreement applies solely to the Note.
Termination of the Note
The Parties agree that the Note, and all obligations and conditions contained in the Note, are unconditionally terminated.
No Admission of Liability
This Agreement constitutes a compromise. It is not an admission of liability by either Party. Each Party agrees to the foregoing release with full knowledge of any and all rights it may have. Each of the Parties acknowledges they have full authority to execute this agreement in the capacities for which they have signed, below.
As full consideration for this Agreement, Borrower shall pay to Lender the amount of $ upon execution of this Agreement.
(a) Severability: If a court finds any provision of this Agreement invalid or unenforceable, the remainder of this Agreement shall be interpreted so as best to effect the intent of the Parties.
(b) Integration: This Agreement expresses the complete understanding of the Parties with respect to the subject matter and supersedes all prior proposals, agreements, representations, and understandings. This Agreement may not be amended except in a writing signed by both Parties.
(c) Waiver: The failure to exercise any right provided in this Agreement shall not be a waiver of prior or subsequent rights.
(d) Attorney Fees and Expenses: In a dispute arising out of or related to this Agreement, the prevailing Party shall have the right to collect from the other Party its reasonable attorney fees and costs and necessary expenditures.
(e) Governing Law: This Agreement shall be governed in accordance with the laws of the State of .
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Settle a debt for less than is owed and avoid disputes over payment with this release
Usually, when someone borrows money from another person, the obligation to repay the money is reflected in a promissory note. But when you agree to settle the debt for less than the amount in the note, you need to sign a release to terminate the note to avoid the possibility of future disputes. Use this legal form to cancel the promissory note and settle the debt once and for all. All the instructions you need to fill out the form are included, so that you can:
- identify the promissory note that will be terminated
- release each party from any claims relating to the note
- guarantee that the release is made voluntarily
- record the payment amount
- terminate the note
You'll get all the information you need to fill out the form, plus directions for signing and notarization -- and essential tips for what to do with the promissory note once the debt is settled.