sample

SETTLEMENT AGREEMENT SAMPLE-ACCIDENT MATTER

THIS AGREEMENT is made this day of ,

BETWEEN

…………………. (NRIC No. …………..) of No. ……….. (hereinafter referred to as

“the 1st Party”) of the one part;

AND

………….. (NRIC No. ……..), of No. ……… (hereinafter referred to as “the 2 nd

Party”) of the other part;

WHEREAS :-

A. The 1st Party has been involved in a minor vehicular accident with the 2 nd
Party resulting in some damages to the 2nd Party’s motor vehicle.

B. Both parties have each done an estimation of the cost of repair works
separately and both parties mutually agree and acknowledge that the
cost of the repair works shall not exceed Ringgit Malaysia ………..
(RM…….) only.

C. The 1st Party has, without admission of liability, agreed to pay the
expenses pertaining to the repair works in advance (hereinafter referred
to as “the Debt”) and both parties mutually agree and acknowledge that
 the 1st Party shall settle the Debt in accordance with the terms and
conditions as stated herein this Agreement.

NOW THIS AGREEMENT WITNESSETH AS FOLLOWS :-

1. The 1st Party hereby agrees that the settlement of the Debt shall
be effected in the following manner :-

(a) a first instalment in the sum of Ringgit Malaysia

…………………… (RM ………) only to be paid on or before the ……..;
and

(b) a second instalment in the sum of Ringgit Malaysia

…………………… (RM ………) only to be paid on or before the
………………..

In the event the 1st Party fails to make the payments within the
stipulated time, the 2nd Party shall have the right to demand full
settlement of the Debt.

2. The parties hereby agree that the Debt shall be regarded as

settled in full once the second instalment is paid and that the 1 st Party
shall no longer be indebted to the 2 nd Party and that this Agreement shall
cease to be binding upon the parties thereafter.

3. Time wherever mentioned in this Agreement shall be of the

essence.

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4. This Agreement shall be governed and construed in accordance
with the laws of Malaysia and this Agreement shall be binding upon the
parties, their successors-in-title and permitted assigns.

(THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK)

IN WITNESS WHEREOF the parties hereto have hereunto set their

respective hands the day and year first above written.

Signed by the 1st Party )

………………………………………………… )
)
in the presence of ) ……………………………

Signed by the 2nd Party )

)
(NRIC No…………………….) )
in the presence of ) ……………………………………………

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