Document background
The Delayed Payment Agreement is essential in Canadian business operations where existing payment obligations need to be modified due to various circumstances such as financial hardship, business restructuring, or mutual agreement between parties. This document is commonly used when a debtor cannot meet original payment terms but remains committed to fulfilling their financial obligations. The agreement ensures compliance with Canadian federal laws including the Interest Act and provincial regulations governing commercial transactions. It typically includes detailed payment schedules, interest calculations, default provisions, and any security arrangements. The document serves multiple business sectors and can be adapted for both commercial and consumer contexts, though consumer agreements must comply with additional provincial consumer protection requirements. A properly structured Delayed Payment Agreement provides legal certainty while allowing flexibility in payment arrangements.
