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Payment Received Agreement Letter for the United Kingdom

Payment Received Agreement Letter Template for England and Wales

A Payment Received Agreement Letter is a formal document governed by English and Welsh law that provides written confirmation of the receipt of payment between parties. It serves as an official record of the transaction, detailing the amount received, payment method, date of receipt, and purpose of the payment. This document helps establish a clear audit trail and can be used as evidence of payment in future disputes or for accounting purposes.

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What is a Payment Received Agreement Letter?

The Payment Received Agreement Letter is a crucial document in business transactions under English and Welsh law, used to formally acknowledge the receipt of funds. This document is particularly important for maintaining accurate financial records and providing legal protection for both parties. It typically includes specific details about the payment, such as the amount, date, method of payment, and purpose. The document serves multiple purposes: it acts as a receipt, provides proof of payment for accounting and tax purposes, and can help prevent future disputes about payment status.

What sections should be included in a Payment Received Agreement Letter?

1. Letter Date and Reference: The date of the letter and any relevant reference numbers for the payment and transaction

2. Recipient Details: Full name and address of the party receiving the payment

3. Payer Details: Full name and address of the party making the payment

4. Payment Details: Specific details about the payment including amount, method, and date of receipt

5. Purpose of Payment: Clear description of what the payment was for, including any relevant invoice or contract references

6. Confirmation Statement: Formal acknowledgment of receipt of the payment and confirmation that it has been processed

What sections are optional to include in a Payment Received Agreement Letter?

1. Outstanding Balance Statement: Details of any remaining balance if the payment is partial or part of installments

2. Future Payment Schedule: Information about expected future payments if part of a series

3. Tax Information: Details about VAT or other tax implications related to the payment

What schedules should be included in a Payment Received Agreement Letter?

1. Payment Receipt: Copy of bank transfer confirmation or payment evidence

2. Original Invoice: Copy of the invoice being paid

3. Account Statement: Current statement showing payment status and any outstanding amounts

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

England and Wales

Publisher

Ƶ

Document Type

Payment Agreement

Sector

Banking

Cost

Free to use
Relevant legal definitions




















Clauses




















Industries

Law of Property (Miscellaneous Provisions) Act 1989: Fundamental legislation governing contract formation and requirements for certain types of contracts to be in writing and signed by parties

Late Payment of Commercial Debts (Interest) Act 1998: Legislation governing interest on late commercial payments and compensation for late payment

Payment Services Regulations 2017: Regulations governing payment services, including electronic payments and payment institutions

Bills of Exchange Act 1882: Historic legislation still relevant today governing negotiable instruments including checks and bills of exchange

Consumer Rights Act 2015: Primary consumer protection legislation that may be relevant if one party is acting as a consumer

Consumer Protection from Unfair Trading Regulations 2008: Regulations protecting consumers from unfair commercial practices and misleading actions or omissions

Value Added Tax Act 1994: Primary legislation governing VAT which may need to be considered in payment documentation

Limitation Act 1980: Sets statutory time limits for bringing legal claims, relevant for future dispute resolution

Electronic Communications Act 2000: Legislation governing electronic communications and digital signatures in legal documents

Electronic Signatures Regulations 2002: Specific regulations governing the use and validity of electronic signatures

UK GDPR: Post-Brexit data protection legislation governing the processing of personal data

Data Protection Act 2018: UK's implementation of data protection standards, working alongside UK GDPR

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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