A payment plan contract is a legally binding agreement that is done for any kind of payment between two parties. The contract involves a payee (the person to whom the money is payed) and a payer (the person who pays the money) where in the payer pays a certain amount of money to the payee for a certain service or any other purpose.
The details of the payee and the payer along with their contact numbers are included in the contract. The payment plan which includes every single detail about the payment that is being made by the payer to the payee follows after that. The type of payment, the amount that is to be paid, the method of payment, the instalment details are all included in the contract. Details about the termination of the payment are included in the contract as well.
The payer and the payee sign the document, preferably before a witness and shall each have a copy of the contract for as long as the payment continues so that any complications that might arise are avoided. They shall also abide by the contract for as long as the payment continues.
Sample Payment Plan Contract