Document background
The Late Payment Agreement serves as a crucial document for businesses and individuals operating under Hong Kong law who need to formalize arrangements for settling overdue payments. It is typically used when a debtor has defaulted on original payment terms but both parties wish to maintain a business relationship and agree on a structured repayment plan. The document addresses key aspects including acknowledgment of the original debt, new payment schedules, interest calculations compliant with Hong Kong regulations, and consequences of default. This agreement is particularly relevant in today's business environment where cash flow management and debt restructuring have become increasingly important. It provides legal protection for both creditor and debtor while ensuring compliance with Hong Kong's Contract Law, Money Lenders Ordinance, and other relevant legislation.
