Many a time it happens that someone owes money to us, but we do not have legal documents that would compel the borrower to pay us the money at every specific time interval, be it every month, every six months, or every year depending on the nature of the transaction the obligee and obligor shares. But there is one legal document, known as payment agreement, that allows the obligee to receive regular payment from the borrower.

Supported Methods

Payment agreement is a document signed by the obligee and a payee, which states that the obligee has to receive a certain amount from a payee to avoid a specific enforcement action. There are many situations where people have to sign such agreements.

For example, in divorce cases, a mother can get the payment agreement signed from the father stating that he has to pay a certain amount for the child till he attains a certain age. Some insurance companies too, get an agreement signed by the policy holders stating that they would pay any amounts that are not paid by the insurance company. Hence, this is a legal document that binds the payee to make regular payments to the obligee.

Refunds

Looking at the diverse nature of payment agreement, it is evident that its structure is subject to change depending on the kind of contract. For example, the template of an insurance company would be different from the personal loan payment for the alimony after divorce. But there are some basic contents that every agreement has to possess. They are as following:

Monetary Protection Agreement

There are many situations where people have to sign such agreements. For example, in divorce cases, a mother can get the payment agreement signed from the father stating that he has to pay a certain amount for the child till he attains a certain age.

Looking at the diverse nature of payment agreement, it is evident that its structure is subject to change depending on the kind of contract. For example, the template of an insurance company would be different from the personal loan payment for the alimony after divorce. But there are some basic contents that every agreement has to possess. They are as following: