Settlement Agreement (Accident) I

SETTLEMENT AGREEMENT -ACCIDENT MATTER

THIS AGREEMENT is made this         day of                       ,

BETWEEN 

 

…………………. (NRIC No. …………..) of No. ……….. (hereinafter referred to as “the 1^st 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 1^st Party has been involved in a minor vehicular accident with the 2^nd Party resulting in some damages to the 2^nd 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 1^st 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 1^st 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 1^st 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 1^st Party fails to make the payments within the stipulated time, the 2^nd 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.

 

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 abovewritten.

 

 

Signed by the 1^st Party                 )

…………………………………………………      )

                                                )

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

 

Signed by the 2^nd Party                 )

                                              )

(NRIC No…………………….)                )

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