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Covenant Not To Sue Form for Philippines

Covenant Not To Sue Form Template for Philippines

A Covenant Not to Sue Form under Philippine law is a legally binding agreement where one party agrees not to pursue legal action against another party regarding specific claims or disputes. This document, governed by Philippine civil law principles, particularly the Civil Code of the Philippines, serves as a formal commitment to forbear from litigation while preserving the underlying legal rights. It differs from a release in that it doesn't extinguish the underlying claim but rather creates a contractual obligation not to enforce it. The document must comply with Philippine contract law requirements and typically includes detailed provisions about the scope of claims covered, consideration provided, and enforcement mechanisms.

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What is a Covenant Not To Sue Form?

The Covenant Not to Sue Form is a crucial legal instrument in the Philippine legal system, commonly used when parties wish to resolve potential or existing disputes without resorting to formal litigation. This document type is particularly valuable in business and commercial contexts where maintaining relationships while addressing legal issues is paramount. The covenant must comply with Philippine civil law requirements and typically includes specific details about the claims being foregone, any consideration being provided, and the scope of the agreement. It's distinct from a full release as it preserves the underlying right while creating a contractual obligation not to enforce it. The document is especially useful in situations involving ongoing business relationships, employment matters, or commercial disputes where parties wish to avoid the costs and uncertainties of litigation while maintaining their basic legal positions.

What sections should be included in a Covenant Not To Sue Form?

1. Parties: Identifies and defines all parties to the agreement, including their legal capacities and addresses

2. Background: Recitals explaining the context of the dispute or potential claims and the parties' desire to resolve through this covenant

3. Definitions: Defines key terms used throughout the agreement, including 'Claims', 'Effective Date', and any other relevant terms

4. Covenant Not to Sue: The core provision where the covenanting party agrees not to initiate or pursue legal action regarding specified claims

5. Scope of Claims: Detailed description of the claims, causes of action, and matters covered by the covenant

6. Consideration: Details of the consideration being provided in exchange for the covenant not to sue

7. Representations and Warranties: Statements by each party regarding their authority to enter into the agreement and understanding of its terms

8. Term and Termination: Duration of the covenant and any circumstances under which it may be terminated

9. Governing Law: Specifies Philippine law as governing law and relevant jurisdiction

10. Execution: Signature blocks and execution requirements

What sections are optional to include in a Covenant Not To Sue Form?

1. Confidentiality: Required when parties wish to keep the existence or terms of the covenant confidential

2. Exceptions to Covenant: Used when certain claims or circumstances are specifically excluded from the covenant

3. Future Claims: Include when addressing potential future claims that may arise from the same subject matter

4. Indemnification: Added when one party agrees to indemnify the other against third-party claims

5. Dispute Resolution: Include when parties want to specify alternative dispute resolution methods for future disputes

6. Assignment: Required when parties need to address whether the covenant rights can be assigned

7. Severability: Include when parties want to ensure partial invalidity doesn't void the entire agreement

8. Corporate Authority: Required when one or more parties are corporations, confirming proper authorization

What schedules should be included in a Covenant Not To Sue Form?

1. Schedule A - Specific Claims: Detailed list of claims or disputes covered by the covenant

2. Schedule B - Related Parties: List of affiliated entities or individuals also covered by or benefiting from the covenant

3. Schedule C - Consideration Details: Detailed breakdown of any monetary or non-monetary consideration

4. Appendix 1 - Corporate Resolutions: Copies of corporate resolutions authorizing the covenant (if applicable)

5. Appendix 2 - Related Agreements: Copies or references to any related settlement agreements or releases

Authors

Alex Denne

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

Jurisdiction

Philippines

Publisher

Ƶ

Document Type

Release Agreement

Cost

Free to use
Relevant legal definitions




































Clauses






























Relevant Industries

Legal Services

Financial Services

Manufacturing

Real Estate

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Legal

Compliance

Human Resources

Risk Management

Corporate Governance

Executive Leadership

Finance

Operations

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Relevant Roles

Legal Counsel

Corporate Secretary

Chief Legal Officer

Risk Manager

Compliance Officer

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Contract Administrator

General Manager

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Settlement Officer

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