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Contract Violation Letter for Philippines

Contract Violation Letter Template for Philippines

A Contract Violation Letter is a formal legal document used in the Philippines to notify a contracting party of their breach of contractual obligations and demand remedy. The document, governed by Philippine civil law, particularly the Civil Code of the Philippines (Republic Act No. 386), serves as an official notice of default and typically precedes legal action. It outlines specific contract violations, demands for remedy, timelines for compliance, and potential consequences of continued non-compliance. The letter must comply with Philippine legal requirements regarding formal demands and notice periods, and often serves as a crucial piece of evidence in subsequent legal proceedings.

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What is a Contract Violation Letter?

The Contract Violation Letter is a critical legal instrument in Philippine business and civil relationships, used when one party has failed to meet their contractual obligations. This document is essential when formal notification of breach is required under Philippine law, particularly as mandated by Article 1169 of the Civil Code of the Philippines, which requires formal demand before legal action can be initiated. The letter serves multiple purposes: it documents the breach, demands specific remedies, sets compliance timelines, and preserves legal rights for potential court action. Contract Violation Letters are particularly important in the Philippine legal system as they establish a clear record of the aggrieved party's attempt to resolve the issue before pursuing litigation, which courts often consider when evaluating cases. The document should be drafted with careful attention to detail, as it may later serve as evidence in legal proceedings.

What sections should be included in a Contract Violation Letter?

1. Letter Header and Date: Formal business letter header including sender's details, recipient's details, and date

2. Subject Line: Clear reference to the contract being violated and its date

3. Contract Reference: Specific details of the original contract including date of execution and parties involved

4. Breach Description: Detailed description of the specific violation(s) with dates, specific clauses violated, and impact of the breach

5. Demand for Remedy: Clear statement of what actions are required to remedy the breach, including specific deadlines

6. Legal Consequences: Statement of legal rights and intended actions if the breach is not remedied

7. Closing and Signature: Professional closing, signature block, and contact information

What sections are optional to include in a Contract Violation Letter?

1. Previous Communications: Reference to any previous attempts to resolve the issue, including dates and methods of communication

2. Financial Impact: Detailed breakdown of financial losses or damages resulting from the breach, if applicable

3. Settlement Proposal: Optional proposal for amicable settlement or alternative resolution, if willing to negotiate

4. Witness Statement Reference: Reference to witness statements or third-party documentation of the breach, if available

5. Without Prejudice Statement: Legal disclaimer preserving rights for future legal action, if considering litigation

What schedules should be included in a Contract Violation Letter?

1. Evidence of Breach: Copies of relevant documentation proving the contract violation

2. Original Contract: Copy of the original contract highlighting relevant violated clauses

3. Communication Records: Copies of previous relevant communications regarding the breach

4. Damage Documentation: If applicable, documentation of losses or damages incurred due to the breach

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

Jurisdiction

Philippines

Cost

Free to use

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