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Payment Waiver Template for Canada

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Key Requirements PROMPT example:

Payment Waiver

"I need a Payment Waiver agreement for our manufacturing company to waive three monthly equipment lease payments from January to March 2025 for our small business client who is experiencing temporary financial hardship."

Document background
A Payment Waiver is a critical legal instrument used in Canadian business and financial transactions when a creditor agrees to forgo their right to receive certain payments from a debtor. This document becomes necessary in various scenarios, such as financial hardship, debt restructuring, or business reorganization. The Payment Waiver must comply with Canadian federal laws, including the Interest Act and applicable provincial legislation, while considering any relevant consumer protection regulations. It typically includes detailed information about the original payment obligations, the specific amounts being waived, any conditions attached to the waiver, and the legal implications for both parties. This document is particularly important in commercial relationships where maintaining business continuity while addressing payment challenges is crucial.
Suggested Sections

1. Parties: Identification of all parties to the agreement, including legal names and addresses

2. Background: Context of the original payment obligation and circumstances leading to the waiver

3. Definitions: Definitions of key terms used throughout the agreement

4. Payment Obligations: Details of the original payment obligations being waived

5. Waiver Terms: Specific terms of the waiver, including amount, duration, and conditions

6. Representations and Warranties: Statements of fact and guarantees by both parties

7. Release: Mutual release of claims related to the waived payments

8. Confidentiality: Obligations regarding confidentiality of the waiver terms

9. Governing Law: Specification of applicable Canadian law and jurisdiction

10. General Provisions: Standard boilerplate clauses including severability, entire agreement, and amendments

Optional Sections

1. Conditional Waiver Terms: Used when the waiver is subject to specific conditions or future events

2. Partial Payment Terms: Include when some payments are still required or when establishing a new payment schedule

3. Security Interests: Required when existing security interests need to be addressed

4. Tax Implications: Include when there are significant tax consequences of the waiver

5. Regulatory Compliance: Required for regulated industries or when specific compliance obligations exist

6. Third Party Rights: Include when the waiver affects rights of parties not directly involved in the agreement

7. Insurance Provisions: Used when insurance policies are affected by the payment waiver

Suggested Schedules

1. Schedule A - Original Payment Agreement: Copy or summary of the original agreement containing the payment obligations

2. Schedule B - Payment History: Record of previous payments and outstanding amounts

3. Schedule C - Waiver Conditions: Detailed list of any conditions that must be met for the waiver to remain valid

4. Appendix 1 - Supporting Documents: Any relevant supporting documentation such as financial statements or proof of hardship

5. Appendix 2 - Consent Forms: Any required third-party consents or regulatory approvals

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions






























Clauses


























Relevant Industries

Financial Services

Banking

Commercial Real Estate

Retail

Manufacturing

Construction

Professional Services

Healthcare

Education

Small Business

Relevant Teams

Legal

Finance

Accounts Receivable

Credit Control

Treasury

Risk Management

Compliance

Commercial Operations

Business Development

Corporate Advisory

Relevant Roles

Chief Financial Officer

Finance Manager

Credit Controller

Accounts Receivable Manager

Legal Counsel

Contract Administrator

Risk Manager

Collections Manager

Treasury Manager

Financial Analyst

Business Development Manager

Compliance Officer

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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