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A Late Payment Agreement is a crucial document used when a debtor has defaulted on original payment terms and both parties wish to formalize a new payment arrangement. This agreement, governed by Nigerian law, is commonly utilized in commercial transactions where a creditor agrees to accept payment of an outstanding debt through a revised payment schedule. The document typically arises from situations involving overdue invoices, unpaid loans, or other commercial debts where the original payment terms need restructuring. It includes essential elements such as debt acknowledgment, detailed payment schedules, interest calculations compliant with Nigerian regulations, and enforcement provisions. The agreement serves both as a debt acknowledgment and a new contract, providing clarity and legal certainty for all parties while ensuring compliance with Nigerian contract law and debt recovery regulations. It's particularly valuable in business environments where maintaining commercial relationships while ensuring debt recovery is important.
