As with other contracts, the agreement does not always have to be in writing, but it is better to conclude the agreement in writing and it is sometimes mandatory to apply it in a written format. With regard to the settlement of the debt, a creditor agrees to waive a certain percentage of the outstanding amount. He agrees to pay himself with a final amount reduced by the total amount due. A debt settlement agreement is a written agreement between a debtor and a creditor in which the debtor undertakes to pay the creditor the outstanding debt owed to him. It is also known as the Debt Compromise Agreement. This agreement can be legally enforced by printing it on an extrajudicial affixing document, stamp duty being affixed in accordance with the laws of the State, the signatures of both parties agreeing. Among the important elements of a valid contract are an offer, an acceptance, a consideration, the quality of the parties, the legality of the object, etc. .