Acknowledgment of debt template (Uganda)
In brief
A precedent acknowledgment of debt in which the debtor admits the debt and agrees terms of repayment.
When to use this
When a debtor admits a debt and you want a written, enforceable record and plan.
When a bespoke document is needed instead: Where the debt is disputed — resolve the dispute first.
The template
A precedent only. Replace every [PLACEHOLDER] with your own details; it contains no real party data. Have it reviewed before use.
Title
ACKNOWLEDGMENT OF DEBT AND REPAYMENT AGREEMENT
Date & parties
THIS ACKNOWLEDGMENT is made on [DATE]
BETWEEN [DEBTOR FULL NAME], of [ADDRESS] (“the Debtor”)
AND [CREDITOR NAME], of [ADDRESS] (“the Creditor”).
1. Admission of the debt
1.1 The Debtor acknowledges and admits owing the Creditor the sum of UGX [AMOUNT] ([amount in words]) as at [DATE], being [basis of the debt].
2. Repayment plan
2.1 The Debtor shall repay the debt [in [number] monthly instalments of UGX [AMOUNT] on the [DAY] of each month from [DATE] / by a lump sum of UGX [AMOUNT] on [DATE]].
2.2 Interest [accrues on the outstanding balance at [RATE] / does not accrue].
3. Default & acceleration
3.1 If the Debtor misses any instalment by [days], the whole outstanding balance becomes immediately due and the Creditor may sue without further notice and recover costs.
4. Acknowledgment for limitation
4.1 The Debtor confirms that this is a written, signed acknowledgment of the debt.
5. General
5.1 This is the entire agreement on the debt; variation must be in writing; governed by the laws of Uganda; disputes resolved by the courts of Uganda.
Execution
Debtor: ____________ Date: ________ Witness: ____________
Creditor: ____________ Date: ________ Witness: ____________
Drafting notes
- Clear admission
- Record a clear admission of the amount and a realistic repayment plan.
- Limitation reset
- A written, signed acknowledgment can affect the running of the limitation period — useful for older debts.
- Default
- State the consequence of default (acceleration) and the right to sue and recover costs.
- Witness
- Witness the signatures and keep an executed copy each.
Execution requirements
- Both parties sign, with a witness; each keeps a copy.
- A signed acknowledgment is strong evidence of the debt and can affect the limitation period.
- Keep records of payments under the plan.
Governing law & citations
Governed by the general law of contract and the Limitation Act, Cap. 290 (2023 Revision).
- Limitation Act, Cap. 290 (2023 Revision).
- Contracts Act, Cap. 284 (2023 Revision) — s.9.