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The Simple Promise To Pay Agreement is a fundamental legal document used in Malaysian business and personal transactions to formalize debt obligations. It is particularly useful when parties need to document an existing debt or restructure payment terms for an outstanding amount. The agreement complies with Malaysian contract law requirements, including the Contracts Act 1950 and Stamp Act 1949, making it enforceable in Malaysian courts. This document is commonly used in situations involving business loans, personal debts, payment restructuring, or acknowledgment of existing obligations. It typically includes detailed payment terms, interest calculations, default provisions, and any security arrangements, providing both parties with clear rights and obligations while ensuring legal compliance.

1. Parties: Identifies and defines the creditor and debtor with their full legal names, identification numbers, and addresses

2. Background: Brief context of how the debt arose and acknowledgment of the outstanding amount

3. Definitions: Defines key terms used in the agreement including 'Due Date', 'Outstanding Amount', and 'Default'

4. Acknowledgment of Debt: Clear statement of the debt amount and debtor's acknowledgment of the obligation to pay

5. Payment Terms: Specifies the amount, payment schedule, payment method, and due dates

6. Interest: States any applicable interest rate and how it is calculated

7. Events of Default: Defines what constitutes a default and the consequences thereof

8. Representations and Warranties: Basic declarations by the debtor regarding their ability to pay and the validity of the debt

9. Notices: How formal communications between parties should be made and delivered

10. Governing Law: Confirms Malaysian law as governing law and jurisdiction