ACKNOWLEDGEMENT OF DEBT
This acknowledgement of debt and payment agreement (hereinafter the "Agreement") is entered into in [City where the contract is signed] on [Contract date] between the following parties:
1. PARTIES
1.1 Creditor:
[Creditor's name/company]
Registry code / personal identification code: [Creditor's registry code / personal ID code]
Address: [Creditor's address]
Contact: [Creditor's contact]
Bank account (IBAN): [Creditor's bank account (IBAN)]
(hereinafter the "Creditor")
1.2 Debtor:
[Debtor's name/company]
Registry code / personal identification code: [Debtor's registry code / personal ID code]
Address: [Debtor's address]
Contact: [Debtor's contact]
(hereinafter the "Debtor")
2. TYPE OF DOCUMENT
2.1 This document is a declaratory acknowledgement of debt — it confirms the Debtor's existing obligation without creating a new independent obligation. The original contractual basis underlying this Agreement remains in force, and in the event of a dispute the Creditor must still prove the original obligation.
2.2 An acknowledgement of debt given by the Debtor must be in written form unless otherwise provided by law (Law of Obligations Act (VÕS) § 30 lg 2). The Parties enter into the Agreement in written form or in an electronic form equivalent thereto.
3. BASIS OF THE DEBT
3.1 Description of the debt: [Description of the debt].
3.2 The debt arises from the following contract or basis: [Reference to the original contract/basis (if any)].
4. ACKNOWLEDGEMENT OF THE DEBT
4.1 The Debtor hereby expressly acknowledges that it owes the Creditor the amounts specified in clause 4.2 and confirms that it has no objections or claims available for set-off against the Creditor in respect of those amounts.
4.2 The amount owed consists of the following parts: principal debt [Principal debt (€)] euros; accrued interest [Accrued interest (€)] euros; accrued late payment interest [Accrued late payment interest (€)] euros; contractual penalty [Contractual penalty (€, if any)] euros; other costs (including legal or collection costs) [Other costs (€, e.g. legal or collection costs)] euros.
4.3 The total of the amounts acknowledged in clause 4.2 constitutes the total debt agreed between the Parties (hereinafter the "Total Debt"), which the Debtor undertakes to pay in accordance with the procedure set out in this Agreement.
5. PAYMENT SCHEDULE
5.1 The Debtor shall pay the entire debt in a single payment by [Payment deadline]. The payment shall be made to the Creditor's bank account [Creditor's bank account (IBAN)].
5.2 A payment is deemed made on the day on which the amount was received in the Creditor's bank account. The Debtor shall include a reference to this Agreement in the payment details.
5.3 If a payment made by the Debtor does not cover all amounts that have fallen due, it shall be applied first to costs, then to interest and late payment interest and lastly to the principal debt.
5.4 The Debtor has the right to pay the Total Debt or part thereof before the date provided in the payment schedule. An early payment shall be applied to cover the subsequent instalments in the order of their due dates.
5.5 The Debtor shall bear the costs related to the performance of its obligation, including bank charges related to making the payments (VÕS § 90).
6. INTEREST DURING THE PAYMENT SCHEDULE
6.1 No additional interest applies during the payment schedule.
6.2 In the event of delay in making a payment, the Creditor may claim late payment interest on the delayed amount at the rate provided by law (VÕS § 113 lg 1). Late payment interest is not calculated on interest or on late payment interest (VÕS § 113 lg 6).
7. CONSEQUENCES OF BREACH
7.1 The entire remaining debt falls due immediately and without further notice if the Debtor fails to make at least one payment under the payment schedule.
7.2 In the event of a breach under this clause, the Creditor has the right to proceed with the collection of the claim or to apply to a court without further notice.
7.3 The Creditor shall notify the Debtor of the amount that has fallen due in writing or in a form which can be reproduced in writing. The provisions of clause 7.1 do not preclude the Creditor's other legal remedies arising from the law.
7.4 In the event of a breach, an additional contractual penalty of [Contractual penalty per breach (€, if any)] euros applies. The contractual penalty has been agreed within the meaning of VÕS § 158; a court may reduce an unreasonably high contractual penalty (VÕS § 162).
8. CONCESSIONS BY THE CREDITOR
8.1 The Creditor makes no concessions to the Debtor under this Agreement.
8.2 If a concession is provided for in clause 8.1 and the Debtor breaches the Agreement in the manner specified in clause 7.1, the concession does not apply, and the Creditor has the right to demand the Total Debt less the amounts paid by the Debtor.
9. REFRAINING FROM COLLECTION
9.1 As long as the Debtor duly complies with the payment schedule, the Creditor shall not file an action or an application in expedited procedure for an order for payment for the collection of the Total Debt, nor transfer the claim to a third party for collection.
9.2 This Agreement does not replace the original obligation with a new one. If the Debtor pays under the Agreement, the original obligation is also deemed performed to the corresponding extent (VÕS § 89 lg 2). Securities established to secure the original obligation remain in force to the extent permitted by law.
10. REPRESENTATIONS OF THE DEBTOR
10.1 The Debtor confirms that it acknowledges the entire amount of the debt specified in clause 4, that it is able to pay in accordance with the payment schedule, and that it will notify the Creditor immediately if any payment difficulties arise.
10.2 The Debtor shall notify the Creditor without delay of any change in its contact details and of any enforcement, bankruptcy or reorganisation proceedings initiated against it.
11. INTERRUPTION OF THE LIMITATION PERIOD
11.1 The acknowledgement of the debt by this Agreement interrupts the limitation period of the claim, and the limitation period begins anew (General Part of the Civil Code Act § 158 lg 1) from the date of entry into this Agreement. The limitation period of a claim arising from a transaction is generally three years (General Part of the Civil Code Act § 146 lg 1).
11.2 Partial payment by the Debtor, payment of interest and provision of security are also deemed acknowledgement of the claim (General Part of the Civil Code Act § 158 lg 2).
12. POSSIBILITY OF NOTARIAL AUTHENTICATION
12.1 For a stronger enforcement option, this Agreement may be notarially authenticated, and the Debtor may consent in the notarial document to be subject to immediate compulsory enforcement — in that case the Creditor may apply to a bailiff without court proceedings. This Agreement has been drawn up in simple written form.
13. CONFIDENTIALITY
13.1 The Creditor shall not disclose the existence of this debt to third parties, provided that the Debtor pays in accordance with the payment schedule specified in clause 5. This does not restrict the Creditor's right to disclose information to its legal and tax advisers and on a legal basis.
14. NOTICES AND PERSONAL DATA
14.1 Notices related to the Agreement which have legal consequences shall be given in writing or in a form which can be reproduced in writing (including by e-mail) at the contact details specified in clause 1 or at other details which the Party has notified to the other Party in writing.
14.2 The Parties shall process each other's personal data solely for the conclusion and performance of the Agreement and for the protection of claims arising from the Agreement, in accordance with the General Data Protection Regulation (EU) 2016/679.
15. DISPUTE RESOLUTION
15.1 Disputes arising from this Agreement shall be resolved through negotiations. Failing agreement, the dispute shall be resolved as follows: [Dispute resolution]. The law of the Republic of Estonia applies.
16. FINAL PROVISIONS
16.1 Amendments to the Agreement, including amendments to the payment schedule, shall be made in writing or in a form which can be reproduced in writing and shall enter into force once both Parties have confirmed them.
16.2 The Creditor's failure to exercise a right arising from the Agreement or a one-time extension of a payment deadline shall not be deemed a waiver of that right.
16.3 If any provision of the Agreement is or becomes invalid, this shall not affect the validity of the remaining provisions or the acknowledgement of the debt in clause 4.
16.4 The Agreement enters into force once both Parties have signed it and remains in force until the Total Debt has been paid in full.
17. LEGAL BASIS
17.1 This agreement is governed by the Law of Obligations Act, including § 30 (acknowledgement of debt). The interruption of the limitation period arises from § 158 of the General Part of the Civil Code Act.