A Legal Payment Plan Agreement is a formal, legally-binding contract between two parties that outlines a payment plan or the terms of how one party will pay the other. The document outlines the terms of payment and addresses the length of time it will take to complete them, any interest rates, late payment fees, and consequences for non-payment. It also serves as evidence in case of a dispute. By outlining the details in a clear and accessible way, a Legal Payment Plan Agreement helps to protect both parties involved by ensuring that all parties understand their rights and responsibilities.