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Creating payment plan for contractor to sign

Hi after issuing my final letter before court action to a contractor who's work was not fit for purpose,they have agree to pay me a set amount in a few installments.I can find some template letters online for them to sign, but would also like to know whats important to include, obviously the dates if payment, the amounts and that if they miss payments ill then claim the money back via court. Also should they send the original paper signed version to me or is it OK digitally? 
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