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Termination Of Contract By Agreement for Philippines

Termination Of Contract By Agreement Template for Philippines

This document is a formal agreement between parties to mutually terminate an existing contract under Philippine law. It sets out the terms and conditions for ending the contractual relationship, including the effective termination date, settlement of outstanding obligations, mutual releases, and any surviving obligations. The agreement ensures compliance with the Civil Code of the Philippines and related legislation, providing a clear framework for the amicable dissolution of the contract while protecting both parties' interests and establishing certainty regarding their future obligations and rights.

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Termination Of Contract By Agreement

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What is a Termination Of Contract By Agreement?

The Termination of Contract by Agreement is a crucial document used when parties mutually decide to end their contractual relationship before its natural conclusion. This document is particularly relevant in the Philippine business environment, where it must comply with the Civil Code of the Philippines and related commercial legislation. It is commonly used when business circumstances change, projects conclude early, or parties agree to part ways amicably. The agreement typically includes provisions for the cessation of obligations, settlement of accounts, return of properties, and survival of certain terms like confidentiality. It's essential for risk management and maintaining good business relationships while ensuring legal compliance with Philippine contract law requirements. The document provides clarity and finality to the termination process, helping prevent future disputes and protecting both parties' interests.

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

1. Parties: Identifies all parties to the termination agreement, including their full legal names and addresses

2. Background: Recitals that identify the original contract, its date, and the parties' mutual desire to terminate it

3. Definitions: Defines key terms used in the termination agreement, including reference to the original contract

4. Termination: States the mutual agreement to terminate and specifies the effective date of termination

5. Settlement of Outstanding Obligations: Details how any outstanding payments, deliverables, or obligations will be handled

6. Mutual Release: Contains mutual releases from future claims relating to the original contract

7. Return of Property: Specifies the process and timeline for returning any property, documents, or materials

8. Confidentiality: Confirms which confidentiality obligations survive the termination

9. Governing Law: Specifies that Philippine law governs the termination agreement

10. Entire Agreement: Confirms this document represents the entire agreement regarding the termination

11. Execution: Signature blocks and execution formalities

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

1. Surviving Provisions: Lists any provisions from the original contract that will survive termination - include if there are specific clauses that should remain in effect

2. Transition Arrangements: Details any transitional period or handover requirements - include if there's a complex handover needed

3. Non-Disparagement: Mutual agreements not to make negative statements about each other - include for sensitive or high-profile terminations

4. Tax Provisions: Addresses tax implications of the termination - include if there are significant tax considerations

5. Intellectual Property: Clarifies ownership and usage rights of IP post-termination - include if IP was involved in the original contract

6. Employee/Personnel Matters: Addresses any staffing implications - include if there are employee transfers or restrictions

7. Insurance and Indemnity: Specifies ongoing insurance obligations or indemnities - include for high-risk contracts

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

1. Schedule 1 - Original Contract: Copy or details of the contract being terminated

2. Schedule 2 - Settlement Statement: Detailed breakdown of any financial settlements, including calculations

3. Schedule 3 - Property Inventory: List of all property, documents, or materials to be returned by either party

4. Schedule 4 - Outstanding Obligations: Comprehensive list of all obligations and their status at termination

5. Schedule 5 - Transition Plan: Detailed timeline and steps for any transition process

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

Cost

Free to use
Relevant legal definitions

























Clauses




































Relevant Industries

Manufacturing

Real Estate

Information Technology

Professional Services

Retail

Construction

Healthcare

Education

Financial Services

Telecommunications

Logistics

Entertainment

Agriculture

Energy

Mining

Relevant Teams

Legal

Procurement

Commercial

Operations

Finance

Risk & Compliance

Business Development

Contract Administration

Project Management

Corporate Affairs

Relevant Roles

Legal Counsel

Contract Manager

Business Development Manager

Chief Executive Officer

Chief Operating Officer

Procurement Manager

Project Manager

Commercial Director

General Manager

Risk Manager

Compliance Officer

Operations Manager

Account Manager

Finance Director

Human Resources Director

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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