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Acknowledgment of Debt South Africa

This agreement sample is for informational and educational purposes only. The agreement sample is not intended to be used for any purpose and is not a substitute for professional legal advice. You should always seek the advice of your legal services provider before entering into any agreement.

 

Acknowledgment of Debt

 

  1. We the undersigned, ____________________________ ("the Debtor"), of ___________________, which address we hereby choose as our domicilium citandi et executandi for purposes hereof, do hereby admit that we are indebted to and hold ourselves bound to ______________________ ("the Creditor") of _________________________, which address the creditor chooses as its domicilium citandi et executandi for purposes herof, for the due and proper payment of R ____________ only, arising from monies advanced to us by the Creditor ("the Principal Debt"); and

 

  1. Furthermore we declare that we are bound by the conditions set out herein.

 

 

1.  The Principal Debt shall not bear interest until due date for repayment. In

     the event that the  Debtor  fails to pay the full  amount of the  Principal

     Debt on the due date for repayment, the Principal Debt outstanding shall

     bear interest  from the due date for repayment at the prime bank  overdraft

     rate as charged and  calculated  by the  Debtor's  bankers

     from time to time,  compounded  monthly in arrear,  as

     certified by any manager of such bank,  whose  appointment and authority it

     shall not be necessary to prove.

 

2.   The Principal Debt shall be paid in full on ___________ ("the due date for

     repayment") free of deduction, set-off or bank charges.

 

3.   Should any payment due in terms of this Acknowledgement of Debt not be made

     on due date the  Creditor may regard the balance of the  Principal  Debt as

     due  and  payable  immediately,  and  may  issue  Summons  therefor  in any

     competent Court without further notice or demand to Debtor.

 

4.   The Debtor herby expressly  renounces the benefits of the non causa debiti,

     the errore calculi,  the revision of accounts and no value  recorded,  with

     the full force, meaning and effect whereof the Debtor declares itself to be

     fully acquainted.

 

5.   The Debtor  hereby  consents  and submits to the  jurisdiction  of the High

     Court of South Africa, Cape of Good Hope Provincial Division, in respect of

     all matters  arising out of and disputes in connection  with or in relation

     to  Acknowledgement  of  Debt  or any  amendment  thereof  or  substitution

     therefor, subject to the right to sue in any competent Court granted to the

     Creditor herein.

 

6.   The Principal  Debt shall become due and payable  immediately if the Debtor

     be placed under liquidation of judicial  management of be wound up, whether

     provisionally or finally and whether  voluntarily of compulsorily or if the

     Debtor  commits any act which  constitutes  and act of insolvency of if the

     Debtor  compromises or attempts to compromise  with any of its creditors or

     if any  judgment  be granted  against the Debtor,  which  judgment  remains

     unsatisfied  (and no appeal against such  judgement of application  for its

     rescission  is lodged),  at the expiry of 30 (thirty) days from the date of

     granting  thereof,  or should any such appeal or application for rescission

     not be duly prosecuted or fail.

 

7.   Should the Creditor  incur costs in the  collection of the Principal  Debt,

     the Debtor shall pay such costs on the attorney-and-client scale as well as

     collection  costs  calculated  at ___ % of each and every

     pament made in reduction of the Principal Debt, interest and costs.

 

8.   The Creditor shall be entitled to cede or pledge its interests herein or to

     trade therewith at its own discretion without the consent of the Debtor. It

     may also in rem suam  discharge or release any  security  partly or in full

     without  the consent of the Debtor or consent of any  alteration,  release,

     relaxation,  or  postponement of the terms hereof and such action shall not

     be binding on the Creditor in any way whatsoever unless it has indicated in

     writing that such action shall be binding.

 

9.   The Creditor may  allocate any payment to capital,  interest,  costs or any

     other item as it deems fit despite any allocation made or deemed to be made

     by the Debtor.

 

10.  Any  certificate  issued  under the  signature  of the Creditor or its duly

     authorized agent that purports to certify the amount due hereunder shall be

     accepted  as  prima  facie  proof  of  such  indebtedness  and  shall  have

     sufficient  probative  value to  enable  the  Creditor  to  obtain  summary

     judgment or provisional  sentence against the Debtor in any competent Court

     for the amount stated in such certificate,  and the Debtor accepts the onus

     of disproving the amount so stated as not being the amount owing.

 

11.  The Debtor shall not be entitled for any reason  whatsoever  to withhold or

     defer any payment stipulated in this Acknowledgement of Debt.

 

12.  The  Creditor  acknowledges  that it shall hold no security for the due and

     proper payment of all liabilities incurred in this Acknowledgement of Debt.

 

13.  The Debtor  shall be at liberty to pay any  portion of the  Principal  Debt

     before the due date thereof  without  derogating from any right it may have

     in terms hereof.

 

14.  Any indulgence of time which may be given to the Debtor with regards to the

     performance of any obligation in terms of this Acknowledgment of Debt shall

     not in any way,  prejudice  the  Creditor,  nor shall it be  regarded  as a

     waiver by the Creditor of any of its rights in terms hereof.

 

15.  No variation or amendment of this  Acknowledgement  of Debt shall be of any

     force or effect  unless  reduced to writing and signed by both the Creditor

     and the Debtor.

 

16.  The Debtor shall pay the costs of and in  connection  with the  negotiation

     and preparation of this  Acknowledgement of Debt as well as any other costs

     charges necessary to give effect to this Acknowledgement of Debt.

 

Signed in __________ This __ day of _____, 201__

 

 

 

 

_______________________

The Creditor

 

 

 

_______________________

As Witness

 

 

 

 

Source: http://www.sec.gov/Archives/edgar/data/1497130/000116552710000601/ex10-1.txt

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