Delegation of Payment Agreement

Delegation of payment agreement – professional template in Word format

A delegation of payment (asignacija) is a transaction between three parties. The delegator (asignant) authorises the delegate (asignat) to pay a specified amount on the delegator’s account to the delegatee (asignatar), and authorises the delegatee to receive that payment in its own name. The typical situation is simple – A owes C, and B owes A, so B pays C and both debts are closed with a single payment.

Delegation is governed by the Obligations Act (Zakon o obveznim odnosima). Unlike an assignment of receivables, in a delegation the claim is not transferred to anyone – the delegate is merely instructed to pay, and its direct obligation towards the delegatee arises only upon acceptance of the delegation. That is why acceptance is built into the contract itself in this template and the delegate must sign the document.

Key features

• Professional template – 6 articles drawn up in line with the provisions of the Obligations Act (Zakon o obveznim odnosima) on delegation.
• Practical reliability – the delegate’s acceptance, both bases of the debts and the effect of the payment are expressly regulated, so there is no doubt about what is extinguished and to what extent.
• Easy customisation – you fill in the details of the three parties, the amounts, the bases and the payment deadline directly in Word.
• Digital availability – the DOCX file with instructions arrives by e-mail immediately after purchase, ready for printing and signing by all participants.

What the template includes

• Details of the delegator, the delegate and the delegatee (name, OIB personal identification number, address or registered office, representative)
• Article 1 – the instruction to the delegate to pay the amount to the delegatee on the delegator’s account
• Article 2 – both bases: the delegator’s debt towards the delegatee and the delegator’s claim against the delegate, with the invoice or contract number, the date and the maturity
• Article 3 – the delegate’s express acceptance of the delegation, which creates its direct obligation towards the delegatee
• A provision on the defences the delegate may raise against the delegatee
• Article 4 – the deadline and method of payment with the IBAN, the bank and the payment reference number
• Article 5 – the effect of the payment, the extinction of both obligations up to the amount paid and confirmation of the payment received
• Instructions for completing the document, with the difference from an assignment of receivables and a note on reconciling the business books of all three parties

We have explained how a delegation works in practice and how it differs from an assignment of receivables in our guide on delegation of payment. To transfer a claim to a new creditor use the assignment of receivables agreement, and for mutual debts between two parties the set-off template.