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A Letter Accepting Payment in Instalments is a concise letter that accepts debt repayments from a debtor in instalments.
A Letter Accepting Payment in Instalments sets out the amount owed, as well as the date the debt has to be repaid, and is used to formalise the agreement for repayment if a business receives an offer by a debtor to pay off their debt in regular fixed amounts. This can prevent any potential legal disputes by setting out clear rules for the repayment of the debt.
A Letter Accepting Payments in Instalments can reserve the right to take any legal action to recover outstanding debt. If the debtor fails to repay the debt on time, this letter can serve as evidence of the agreement.
Percentage of Ownership
Different parties or partners who get into a partnership agreement have different commitments and contributions to help the start-up scale. The partners agree to pay various capital to help the startup beforehand and these contributions then dictate the percentage of ownership that each partner gets over the business.
Division of Profit and Loss
Generally, partners agree to share the profits and losses with retrospect to the percentage of ownership. However, the division can also be equally allocated to all partners regardless of ownership stake.
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