# Payment Plan Agreement — Settlement of Disputed Claim, Three Instalments with Late-Payment Interest (Business to Business)

> **Sample document — not legal advice.** This document was drafted by the LawCrew AI agent team and is published at `lawcrew.ai/samples` as a showcase of how our pipeline approaches a common Singapore Payment Plan Agreement scenario. This run completed automated drafting, self-critique, adversarial review and deterministic gates, then routed to lawyer review (Auto-revision exhausted after 5 attempts. Remaining: Section 6. Reservation of Rights: Clause 6.2 incorrectly states that the agreement operates as an immediate accord and satisfaction and that the original debt is fully discharged upon execution. This contradicts Clause 2.2 (which states release occurs upon full payment) and fatally deprives the Creditor of the right to fall back on and sue for the original debt if the Debtor defaults on the payment plan. The clause must expressly reserve the Creditor's right to pursue the original underlying claim in the event of default.; Clause 2.2: The condition 'in accordance with this Agreement' introduces a risk of unclear discharge. A strict interpretation could allow the Creditor to argue that if an instalment was paid late (even if accepted), the payment was not made 'in accordance with this Agreement', thereby attempting to withhold the final release. As Debtor's counsel, the release must trigger unequivocally once the Creditor has received the full Settlement Sum.). **It is not legal advice and is not tailored to any specific transaction.**
>
> LawCrew is a legal-technology service, not a law firm. For your own matter, run an intake through the product and engage an independent Singapore-qualified lawyer to review before signing.
>
> *Sample Payment Plan Agreement #02 · Agent-drafted; routed to lawyer review · Published 2026-05-27*

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# Payment Plan Agreement

**This Payment Plan Agreement** (this **"Agreement"**) is made as of 15 June 2026 by and between:

(1) **Atlas Interiors & Build Pte Ltd**, a company having its address at 16 Kallang Place, #07-09, Singapore 339156 (the **"Creditor"**); and
(2) **Lumiere Dining Concepts Pte Ltd**, a company having its address at 1 Fullerton Road, #02-08, One Fullerton, Singapore 049213 (the **"Debtor"**),

each a **"Party"** and collectively the **"Parties"**.

## Recitals

(A) The Parties had a difference over the final instalment due on completed fit-out works. Without admission of liability by either Party, they have agreed that the Debtor will pay the Creditor a compromise sum of SGD 45,000 in three monthly instalments in full and final settlement.

(B) The Parties wish to resolve the matter described in Recital (A) on the terms set out in this Agreement, without admission of liability by either Party, by the Debtor paying the Settlement Sum to the Creditor in instalments.

## 1. Definitions

In this Agreement:
(a) **"Settlement Sum"** means **SGD 45,000.00**, being the amount the Debtor is to pay the Creditor under this Agreement;
(b) **"Instalment"** means each scheduled payment set out in clause 3;
(c) **"Instalment Schedule"** means the schedule of Instalments set out in clause 3.

## 2. Agreement to Pay

2.1 The Debtor shall pay the Creditor the Settlement Sum by the Instalments and on the dates set out in the Instalment Schedule.
2.2 The aggregate of all Instalments equals the Settlement Sum in full. On payment of all Instalments in accordance with this Agreement, the Debtor's obligations in respect of the Settlement Sum are fully and finally discharged, and the Creditor fully releases the Debtor from all claims relating thereto.
2.3 The Debtor may prepay any Instalment or the whole of the Settlement Sum at any time without penalty.

## 3. Instalment Schedule

| Instalment | Due date | Amount |
| --- | --- | --- |
| 1 | 30 June 2026 | SGD 15,000.00 |
| 2 | 31 July 2026 | SGD 15,000.00 |
| 3 | 31 August 2026 | SGD 15,000.00 |

## 4. Payment Method

Each Instalment shall be paid by bank transfer to the Creditor's designated account, details of which the Creditor shall provide. Payment is treated as made on the date cleared funds are received by the Creditor.

## 5. Default and Consequences

5.1 If the Debtor fails to pay any Instalment in full by its due date and the Debtor fails to remedy that non-payment within **7 days** of written notice from the Creditor, the Debtor is in default under this Agreement.
5.2 On default, the Creditor may declare the entire outstanding balance of the Settlement Sum immediately due and payable, and the outstanding balance shall bear simple interest at the rate of 5.33% per annum from the date of default until payment.
5.3 The Creditor's acceptance of any late or partial payment does not waive the Creditor's rights in respect of any continuing or subsequent default.

## 6. Reservation of Rights

6.1 If the Debtor defaults under this Agreement, the Creditor reserves the right to declare the unpaid balance of the Settlement Sum immediately due and payable and commence civil proceedings to recover such unpaid balance.
6.2 This Agreement operates as an immediate accord and satisfaction. The original debt described in Recital (A) is fully discharged upon execution of this Agreement, being replaced by the Debtor's obligations hereunder.
6.3 Nothing in this Agreement constitutes an admission of liability by either Party for any purpose.

## 7. No Variation Except in Writing

No variation of this Agreement is effective unless made in writing and signed by or on behalf of each Party.

## 8. Governing Law and Jurisdiction

This Agreement is governed by and construed in accordance with the laws of the Republic of Singapore. The Parties submit to the exclusive jurisdiction of the courts of Singapore in connection with any dispute arising out of or in connection with this Agreement.

## Signatures

| Creditor | Debtor |
| --- | --- |
| **Atlas Interiors & Build Pte Ltd** | **Lumiere Dining Concepts Pte Ltd** |
| By: Grace Wong Lai Peng (Managing Director) | By: Marcus Chia Jun Hao (Director) |
| Date: ____________________ | Date: ____________________ |