ACKNOWLEDGEMENT OF DEBT

1. ACKNOWLEDGEMENT

 

I, the undersigned,

 

           ……………………………, ID no: …………………., with residential address …………………………………………………………………………………………and domicilium address: ………………………………………………………………………….,

with e-mail address: ……………………………………………………………………

 

in my personal capacity, acknowledge that I am truly and lawfully indebted to and in favour of:       

 

    …………………………………, Id no ……………………….

    

(hereafter referred to as “the Creditor”)

 

and his/ successors and/or assigns in the amount of R………………………. (One ……………………………………….) (“the capital amount’) arising from money lent and advanced to me by the Creditor and/or expenses incurred on behalf of me by the Creditor, which money was paid to me, or alternatively on behalf of me during 20.. . I unequivocally agree to be bound by the terms and conditions contained in this Acknowledgement of Debt.

 

2. INTEREST

 

• I shall pay interest at the rate of 20% per annum compounded monthly in arrears on the full capital amount of R……….. plus interest outstanding with effect from …………. 20…

 

3. REPAYMENT

3.1         I shall pay the capital amount of R………… and all interest due in terms of this acknowledgement of debt in 41 monthly instalments of R……. each, the first instalment of R ………. to be made on or before …… 20.. and each respective instalment to be made on or before the first day of each month thereafter, the last instalment of R…………. to be paid on or before  20… A schedule of the instalments payable and the manner of calculation of the interest is annexed to this acknowledgement of debt marked 1.1.

 

3.2         I shall pay the instalments:

 

• in cash free of bank charges, deduction or set-off;

 

until the full debt is repaid.

 

• to the Creditor by deposit into the Creditor’s bank account with details: …………………………………………………………………….

………………………………………………………………………………

………………………………………………………………………………

 

3.3         The instalments will be appropriated firstly towards any collection commission and/or legal costs where applicable, then interest and thereafter in reduction of the capital amount.

3.4         I shall be liable to continue paying the debt until all the collection commission and / or legal costs envisaged, interests and capital are paid in full.

 

4. EARLY REPAYMENT

 

I shall at any time (without the need for any minimum period to have elapsed after the execution of this instrument or after any other date) be entitled to repay the balance of the capital amount outstanding together with the interest payable thereon, in one amount.

 

5. DEFAULT

 

5.1       Should I fail to make any payment on the due date as stipulated in this acknowledgement of debt, then I shall be immediately liable for the full capital amount plus interest and costs and collection commission.

 

5.2       Notwithstanding the provisions contained in sub-clause 5.1, in the event of me:

 

5.2.1   failing to make payment of any amount by due date; or

 

5.2.2   becoming the subject of sequestration, winding up or dissolution proceedings; or

 

5.2.3   effecting or offering a general compromise or deed of arrangement with creditors or with any class of creditors, or make any assignment for the benefit of creditors; or

 

5.2.4   suffering a judgment to be granted or entered against it in or by any Court of Law, and unreasonably fails to cause such judgment to be satisfied within a period of 10 (ten) days from the date of such judgment;

 

5.2.5  alienating or selling or attempting to sell the assets before this debt is paid in full;

 

 

then the full amount of the capital amount outstanding, together with the interest payable thereon, collection commission and/or legal costs will immediately become due and payable by me without prior notice and/or demand from the Creditor.

 

6. BREACH; JURISDICTION; CONFIRMATION OF BALANCE

 

Without limiting the generality of the provisions contained elsewhere in this agreement, should the I breach any terms of this instrument the Creditor becomes entitled to enforce any of the provisions of this acknowledgement of debt, then without prejudice to any other rights which the Creditor may have and in addition to the Creditor’s common law rights, the full amount of the capital amount outstanding, together with the interest payable thereon, will immediately become due and payable by me without prior notice and/or demand from the Creditor.

 

A certificate signed by the Creditor or his personal accountant confirming the amount due and payable shall be sufficient prima facie evidence of the debt owing for the purposes of obtaining summary judgment or provisional sentence against me for the amount claimed in the Magistrate’s Court.

 

In the event that any breach is committed and it is necessary to take legal action in respect of the recovery of this money, then I consent to the jurisdiction of the Magistrate’s Court irrespective of whether the amount claimed is greater than the legislated jurisdiction of the Magistrate’s Court.  I acknowledge that I am liable to pay any legal costs incurred in respect of any legal action taken against it for the recovery of any money outstanding in terms of this agreement on an attorney and client scale.

 

7. WAIVER

 

No extension of time or indulgence by either party to the other will be deemed in any way to affect, prejudice or derogate from the rights of such party in any respect under this instrument, nor shall it in any way be regarded as a waiver of any rights hereunder, nor a novation of this instrument.

 

 

 

 

8. NON VARIATION

 

No variation of this instrument will affect the terms hereof unless such variation is reduced to writing and signed by or on behalf of the parties.

 

9. COSTS

 

9.1         I agree to pay the cost of the attorney who drafted this agreement in the sum of R…………. plus VAT.

9.2         In the event that I default with anyone payment I agree to pay collection commission and, on an attorney and own client scale, all legal fees incurred by the Creditor in respect of any claim or proceeding arising out of or being in connection with this instrument, as well as all collection commission and tracing costs.

 

10. ENTIRE AGREEMENT

 

This acknowledgement of debt constitutes the entire agreement between the Creditor and myself, the debtor, and no variation hereof will be of any force or effect unless it is in writing and signed by, or on behalf of, the Creditor and the Borrower.

 

11. NATIONAL CREDIT ACT

 

I confirm that this acknowledgement of debt is not bound by the National Credit Act of the Republic due to the fact that it is a large agreement as the commercial enterprise to which the debt pertains had a turnover of more than R 1000000, 00 per annum.

 

 

THUS DONE AND SIGNED AT _____________________ ON THE _____ DAY OF __________________ 20..

 

AS WITNESSES:

 

1. ___________________________

 

2          ___________________________

________________________

 

……………………… (Debtor),

 

THUS DONE AND SIGNED AT _____________________ ON THE _____ DAY OF __________________ 20..

 

 

AS WITNESSES:

 

1. ___________________________

 

2. ___________________________

_____________________________

 

……………………………..(Creditor)