DEBT SETTLEMENT AGREEMENT

 

DEBT SETTLEMENT AGREEMENT

This Debt Settlement Agreement (the “Agreement”) states the terms and conditions that govern the contractual agreement between Johnson Yesaya of P.O.Box 2021, Dar es Salaam having its principal place of business at Mikocheni, Dar-es-Salaam Tanzania (the “Debtor”), and Ishai Real Estate of P. O. Box 901, Posta, Dar-es-salaam having its principal place of business at Posta, Dar-es-salaam Tanzania (the “Creditor”) who agrees to be bound by this Agreement.

WHEREAS, the Debtor is indebted to the Creditor in the amount of TZS 22,100,000.00 (the “Debt”); and

WHEREAS, the Debtor wishes to settle the Debt in full according to the terms of this Debt Settlement Agreement.

NOW, THEREFORE, In consideration of the mutual covenants and promises made by the parties hereto, the Debtor and the Creditor (individually, each a “Party” and collectively, the “Parties”) covenant and agree as follows:

1.      DESCRIPTION OF DEBT

That, the Debtor on several occasion borrowed money from the Creditor making outstanding debt amounting to TZS 22,100,000.00.

 

2.      ACKNOWLEDGMENT OF DEBT.

The Debtor agrees and acknowledges that it is indebted to the Creditor in the full amount of the Debt.

3.      SETTLEMENT AMOUNT.

The Creditor agrees to accept from the Debtor, payment amount of TZS 22,100,000.00 inclusive full repayment of the Debt outstanding to the Creditor at the date hereof, subject to the terms and conditions of this Agreement. Payments shall be made according to the schedule attached hereto as Exhibit A (the “Settlement Payments”).

4.      START AND COMPLETION DATE

That the Creditor claims the outstanding sum of the debt of TZS 22,100,000.00 to the creditor and they have mutually agreed the payment of the outstanding sum on installment basis for ten (10) months starting from 16^st August 2019 to 30^th June 2020. The Debtor guarantees to pay 5% to 30% of the total debt in every 90 days from the commencement of this agreement.

5.      PAYMENT

That the Debtor will pay the first installment of TZS 6,630,000.00 on 16^th October 2019 and the Debtor Agrees to pay the remaining installments in every three months save for the last installment to be paid in June 2020 where the Debtor will pay TZS 2,210,000.

The Debtor shall use the following modes to pay the debt: CRDB A/C 0000000000000 or Cash or Sim Banking or Airtel Money through 0999999999999 (Registered name: Ishai Real Estate)

That the Creditor agreed to receive whichever higher amount of the agreed installment from the Debtor in case arise to finalize the payment as earlier dates as it might be possible.

6.      GOVERNING LAW

Where there is a breach of this contact the governing law will be the laws of the United Republic of Tanzania. This Debt Settlement Agreement and the interpretation of the terms herein shall be governed by and construed in accordance with the laws of the United Republic of Tanzania. The Parties irrevocably submit to the exclusive jurisdiction of the courts located in laws of the United Republic of Tanzania.

7.      BINDING EFFECT

This agreement shall be binding upon and inure to the benefit of each of the parties hereto, their heirs, personal representatives, successors or assigns.

8.      ENTIRE AGREEMENT

Each of the parties hereto agree and represent that this Agreement comprises the full and entire Agreement between the parties effecting the work and that no other agreement or understanding of any nature concerning the same has been entered into or will be recognized and that all negotiations, acts, work performed or payments made prior to the execution hereof shall be deemed merged in, integrated and superseded by this Agreement. This Agreement may not be modified unless done so by written agreement. 

9.      FULL INTEGRATION.

This Debt Settlement Agreement supersedes any prior agreements, understandings, or negotiations, whether written or oral. 

10.  FURTHER ASSURANCE.

The Parties shall make any further assurances as may be necessary to implement and carry out

the intent of this Agreement.

IN WITNESS WHEREOF the parties have signed this agreement the day and the year first above written.

 

FOR THE DEBTOR

Name: __________________________________

Address: _________________________________

Title: ___________________________________

Signature: _______________________________

Date___________________________________

FOR THE CREDITOR:

Name: __________________________________

Address: _________________________________

Title: ___________________________________

Signature: _______________________________

Date____________________________________

WITNESSED BY

Name: __________________________________

Address: _________________________________

Title: ___________________________________

Signature: ________________________________

 

Date____________________________________

 

 

 Exhibit A

SETTLEMENT PAYMENTS

DATE	AMOUNT PAID	CREDITORS SIGNATURE	DEBTORS SIGNATURE	WITNESS
16th October 2019
16th January 2020
16th April 2020
30th June 2020