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Contract Termination By Agreement for Philippines

Contract Termination By Agreement Template for Philippines

This document is a formal agreement under Philippine law that facilitates the mutual termination of an existing contract between two or more parties. It outlines the terms and conditions for ending the contractual relationship, including the effective date of termination, settlement of outstanding obligations, return of property, and mutual releases. The agreement ensures compliance with Philippine civil law requirements while providing a clear framework for winding down the contractual relationship in an amicable manner. It includes provisions for handling confidential information, surviving obligations, and any necessary transition arrangements.

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Contract Termination By Agreement

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What is a Contract Termination By Agreement?

The Contract Termination By Agreement is a crucial legal document used in the Philippines when parties mutually decide to end their contractual relationship before its natural conclusion. This document is particularly relevant when both parties have reached an amicable decision to terminate their obligations and wish to formalize this arrangement in compliance with Philippine civil law. It provides a comprehensive framework for addressing all aspects of the termination, including outstanding payments, asset returns, and ongoing obligations. The agreement is designed to prevent future disputes by clearly documenting the parties' intentions and mutual releases, while ensuring all necessary legal requirements under Philippine jurisdiction are met. It's commonly used in various business contexts, from service agreements to supply contracts, and can be adapted to accommodate specific industry requirements or complex multi-party arrangements.

What sections should be included in a Contract Termination By Agreement?

1. Parties: Identification of all parties to the original contract and this termination agreement

2. Background: Brief description of the original contract, its date, and the circumstances leading to this termination

3. Definitions: Key terms used in the termination agreement, including references to the original contract

4. Mutual Agreement to Terminate: Clear statement of the parties' agreement to terminate the original contract

5. Effective Date of Termination: Specific date when the termination becomes effective

6. Settlement of Outstanding Obligations: Details of any remaining payments, deliverables, or obligations to be fulfilled

7. Release and Waiver: Mutual release from future claims and obligations under the original contract

8. Return of Property: Requirements for returning any physical or intellectual property

9. Confidentiality: Survival of confidentiality obligations post-termination

10. Governing Law: Confirmation of Philippine law as governing law

11. Execution: Signature blocks and execution requirements

What sections are optional to include in a Contract Termination By Agreement?

1. Transition Arrangements: Use when there's a need for a transition period or handover process

2. Surviving Provisions: Include when certain provisions of the original contract need to survive termination

3. Non-Disparagement: Add when parties wish to include mutual obligations not to speak negatively about each other

4. Future Cooperation: Include when parties need to specify any post-termination cooperation requirements

5. Tax Provisions: Add when there are specific tax implications that need to be addressed

6. Public Announcements: Include for high-profile contracts where public communication needs to be managed

7. Insurance and Indemnity: Add when there are ongoing insurance or indemnity obligations that need to be addressed

What schedules should be included in a Contract Termination By Agreement?

1. Schedule of Outstanding Payments: Detailed list of any remaining payments to be made between parties

2. Schedule of Assets for Return: Inventory of physical or digital assets to be returned by either party

3. Schedule of Ongoing Obligations: List of any obligations that survive the termination

4. Certificate of Completion: Template certificate confirming completion of all termination obligations

5. Release Form: Template for mutual release of claims

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Philippines

Document Type

Cancellation Letter

Sector

Sales

Cost

Free to use
Relevant legal definitions


























Clauses


























Relevant Industries

Manufacturing

Technology

Real Estate

Construction

Financial Services

Retail

Healthcare

Education

Transportation

Energy

Telecommunications

Professional Services

Agriculture

Mining

Entertainment

Relevant Teams

Legal

Procurement

Commercial

Operations

Compliance

Risk Management

Business Development

Finance

Corporate Affairs

Contract Administration

Relevant Roles

Legal Counsel

Contract Manager

Chief Legal Officer

Business Development Manager

Procurement Manager

Chief Executive Officer

Chief Operating Officer

Project Manager

Account Manager

Compliance Officer

Risk Manager

Commercial Director

Operations Manager

General Manager

Corporate Secretary

Industries





Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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