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The Promise Of Payment Contract is a fundamental legal instrument in South African commercial and private dealings, used when a debtor acknowledges an existing debt and commits to a structured repayment plan. This document is particularly relevant in situations involving outstanding payments, debt restructuring, or formalization of informal lending arrangements. It must comply with South African legislation, including the National Credit Act, Consumer Protection Act, and common law principles. The contract typically includes detailed payment terms, interest calculations, default provisions, and remedies available to the creditor. It serves both as an acknowledgment of debt and a formal commitment to repay, making it a valuable tool for debt management and potential legal enforcement.

1. Parties: Identification and details of the creditor and debtor, including full legal names, registration/ID numbers, and physical addresses

2. Background: Context of the debt, including its origin and current status

3. Definitions: Key terms used in the agreement, ensuring clear interpretation

4. Acknowledgment of Debt: Clear statement of the amount owed and debtor's unconditional acknowledgment of the debt

5. Payment Terms: Detailed payment schedule, including amount, frequency, and due dates of payments

6. Interest: Applicable interest rate and calculation method, ensuring compliance with the In Duplum rule

7. Method of Payment: Specified payment methods and banking details for transfers

8. Default Provisions: Consequences of missing payments and creditor's rights upon default

9. Breach and Acceleration: Conditions constituting breach and the right to demand full payment

10. Domicilium: Chosen addresses for legal notices and communications

11. General Terms: Standard contractual provisions including entire agreement, variation, and governing law

12. Signatures: Execution clause and signature blocks for all parties