Despite not being a lawyer, I have drafted a settlement and release agreement. I don't know if the context is correct. I deem the document necessary though as the LENDER has a short attention span and might forget that we actually have made this payment. I don't think a simple official receipt would do either so I made this settlement agreement.
Kindly have a look... Thank you so much
SETTLEMENT AGREEMENT AND RELEASE
This Agreement, made and entered into by and between:
xxxxx, a resident of xxxxx, hereinafter referred to as "BORROWER".
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xxxxx, a resident of xxxxx, hereinafter referred to as “LENDER”.
WHEREAS, in 2002, to serve as part of the payment for the hospitalization of xxxx, the BORROWER has borrowed the total amount of FIFTY THOUSAND PESOS (Php 50,000.00) from the LENDER;
WHEREAS, herein parties have agreed that the amount loaned shall be paid at a time convenient to the BORROWER, in consideration of the parties’ personal relationship as siblings;
WHEREAS, on ______________, the LENDER has received the amount of FIFTY THOUSAND PESOS (Php 50,000.00) from the BORROWER as payment for the loan amount.
NOW THEREFORE, for and in consideration of the foregoing premises and the covenants hereinafter stipulated, the parties hereby agree as follows:
1. The LENDER acknowledges receipt of the amount of FIFTY THOUSAND PESOS (Php 50,000.00); and,
2. In consideration of this payment, the LENDER completely releases and forever discharge the BORROWER, of and from any and all past, present or future claims, demands, obligations, actions, causes of action, rights, damages, costs and compensation. The LENDER also understands that the amount has been settled already and agrees to henceforth QUIT CLAIM unto said loan amount. The LENDER also understands that the matter has been resolved with finality.
IN WITNESS WHEREOF, the parties have set their hands and affixed their signatures this _____ day of ___________, 2011 at xxxx, Philippines.