- Acknowledgement of Debt (AOD) - R 450.00
- Memorandum of Understanding (MOU) - Free
- Suretyship - R 450.00
- Cession as Security Agreement - R 450.00
- Guarantee Agreement - R 450.00
An Acknowledgement of Debt is commonly referred to as an “AOD” and is an unequivocal admission of liability by a person (the “Debtor”) that he or she owes another person (the “Creditor”) money.
Generally, an MOU is a non-binding agreement between parties in which the parties record certain facts and discussion surrounding a proposed binding agreement that they wish to enter into.
MOUs are often combined with non-disclosure agreements (which are binding on the Parties) and also sometimes contain non-solicitation of key individual provisions (which are also binding on the Parties).
The MOU is also sometimes referred to in practice as a “Term Sheet” or a “Recordal”, and usually contain key principles that must be mirrored in the definitive agreement and a recordal of certain actions to be taken by the applicable parties to the MOU.
A Suretyship or Surety Agreement is a legal document in terms of which a person or entity (the “Surety”) agrees that if another person or entity (the “Debtor”) does not pay the Creditor, then the Creditor may claim the amount due by the Debtor from the Surety.
In a cession in security, the cedent transfers its right of action to a debt owed to it, known as the principal debt, to the cessionary as security for the debt owed by the cedent to the cessionary, known as the secured debt. A right of action is the legal standing to collect the principal debt. The ownership in the right, however, remains vested in the cedent despite the cession.
A Guarantee Agreement is similar to a Suretyship where a debt owed by a debtor is secured in favour of a creditor by another party (the "Guarantor". The Guarantee Agreement is seen as a stronger form as security as it creates a primary obligation on the Guarantor to perform under the Agreement.