[Professional Review of Repayment Agreement] A Case Where a Corporate Lawyer Protected the Client's Rights

Law firm Veat thoroughly reviewed the settlement agreement between the client company (hereinafter referred to as "the client") and its trade partner at the request of a label company A.

The client wanted to create a settlement agreement with a trade partner who was not paying installment payments and wanted to reach a smooth agreement, and requested legal advice from Law firm Veat to conclude it legally safely.

Law firm Veat Contract Attorney's Key Review of the Settlement Agreement

1. Addition of Delayed Payment Damages Clause

The client wanted to prevent damages that could occur if the trade partner did not pay the amount due by the due date. Accordingly, Law firm Veat clearly stipulated the payment deadline and added a clause stipulating that if payment is made after the deadline, an additional delayed payment damages ratio would be borne. This strengthened the debtor's willingness to pay and minimized the client’s financial losses in the event of default.

2. Specific Payment Plan and Method Specified

It is important to not only specify the payment schedule but also to specify the payment method in the settlement agreement. Accordingly, Law firm Veat established a realistic payment plan so that the trade partner could make payment, and reflected it in the contract. Various options such as lump-sum payment and installment payment were considered as the payment method, and the details were clearly described.

3. Clarification of Legal Basis of Claim

The settlement agreement should clearly state the contract on which the client's claim against the trade partner is based. Law firm Veat thoroughly reviewed the client’s existing contract to clearly state the basis for the claim in the settlement agreement. This secured the legitimacy of the claim legally and can be used as reliable evidence in the event of future legal disputes.

4. Addition of Payment Obligation Compliance Clause

If the debtor does not faithfully fulfill the contents of the settlement agreement, additional legal action by the creditor may be necessary. Accordingly, Law firm Veat clearly stipulated that the trade partner must faithfully perform the payment obligation and that additional legal liability will be borne if violated. This strengthened the legal binding force of the settlement agreement and clarified the debtor’s responsibility.

Why is a Review of the Settlement Agreement Necessary?

The settlement agreement is an important contract that clearly stipulates the payment conditions between the debtor and creditor and prevents potential disputes. Especially when unpaid debts exist, failing to resolve them smoothly can lead to long-term delay in debt collection. Therefore, we recommend reviewing the settlement agreement with the help of a legal professional to protect your legal rights and minimize risks that may occur during the payment process.

Unpaid debt issues can be a significant burden on business operations, and it is essential to establish legal countermeasures in advance to resolve them effectively.

Law firm Veat has extensive legal advisory experience ranging from initial startups to various stages of corporate growth. In particular, it handles sensitive issues such as employee departures, which companies in the IT/startup sector, where technology and business intersect, face, shareholder contracts, investment, and provides rapid and professional legal advice like an in-house counsel.

Furthermore, it provides legal advice optimized for clients by comprehensively reviewing legal issues that may occur in actual business environments.

If you need regular corporate legal advisory services necessary during the growth process of a company, such as agreement and contract review, please contact Law firm Veat.

You can check the case example of this case on the Law firm Veat blog below.

- [Professional Review of Settlement Agreement] Case of Client Protection by Corporate Attorney

Thank you.

Law firm Veat