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Intent To Pay Letter for the United Kingdom

Intent To Pay Letter Template for England and Wales

An Intent To Pay Letter is a formal written commitment under English and Welsh law where a debtor acknowledges a debt and commits to making payment according to specified terms. This document serves as both an acknowledgment of debt and a promise to pay, potentially creating a new cause of action under the Limitation Act 1980. While not as formally binding as a deed, it provides creditors with written evidence of the debt and the debtor's commitment to pay, which can be valuable in any subsequent legal proceedings.

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What is a Intent To Pay Letter?

An Intent To Pay Letter is commonly used in situations where a debt exists and the debtor wishes to formally acknowledge the obligation and establish a payment arrangement. Under English and Welsh law, this document typically includes specific details about the debt amount, payment terms, and timeframes. The letter can help prevent disputes about the existence of the debt and may restart the limitation period for debt collection. It's particularly useful in commercial relationships where maintaining business relationships while ensuring payment is crucial.

What sections should be included in a Intent To Pay Letter?

1. Date: Current date of the letter

2. Addressee Details: Full name and address of the creditor

3. Debt Acknowledgment: Clear statement acknowledging the specific amount owed

4. Payment Terms: Specific payment arrangements including amounts and dates

5. Signature Block: Debtor's signature and details

What sections are optional to include in a Intent To Pay Letter?

1. Interest Terms: Details of any applicable interest, use when interest is being charged

2. Security Details: Information about any collateral or security, use when debt is secured

3. Third Party Guarantor: Details of any guarantor, use when payment is guaranteed by another party

What schedules should be included in a Intent To Pay Letter?

1. Payment Schedule: Detailed breakdown of payment installments and dates

2. Original Debt Documentation: Copies of invoices or agreements evidencing the original debt

3. Statement of Account: Current account statement showing debt amount and any previous payments

Authors

Alex Denne

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

Jurisdiction

England and Wales

Publisher

Genie AI

Document Type

Letter of Intent

Cost

Free to use
Relevant legal definitions












Clauses














Industries

Law of Property Act 1925: Fundamental legislation governing property rights and interests in England and Wales, relevant for any contractual obligations involving property or assets

Contract (Rights of Third Parties) Act 1999: Governs how third parties may enforce terms of a contract, which could be relevant if the payment obligation involves or affects third parties

Misrepresentation Act 1967: Provides remedies for false statements made during contract formation, ensuring truthful representation of payment capabilities and intentions

Late Payment of Commercial Debts (Interest) Act 1998: Sets out statutory rights to claim interest on late commercial payments and compensation for debt recovery costs

Late Payment of Commercial Debts Regulations 2013: Updates and supplements the 1998 Act, providing additional rules on maximum payment terms and interest calculations

Limitation Act 1980: Establishes time limits for bringing legal claims, including the six-year limitation period for debt claims

Consumer Rights Act 2015: Protects consumer interests in contracts, relevant if the debtor is acting as a consumer rather than a business

Consumer Credit Act 1974: Regulates consumer credit agreements and provides consumer protections in credit transactions

Insolvency Act 1986: Governs insolvency proceedings and arrangements with creditors, relevant if there are concerns about the debtor's solvency

Companies Act 2006: Primary legislation governing company operations in the UK, relevant when dealing with corporate entities in payment arrangements

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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