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Covenant Not To Sue Settlement Agreement for Philippines

Covenant Not To Sue Settlement Agreement Template for Philippines

A comprehensive legal document governed by Philippine law that combines elements of both a settlement agreement and a covenant not to sue. It establishes the terms under which parties agree to resolve their existing disputes or potential claims while simultaneously incorporating a binding commitment not to initiate or pursue legal action regarding the settled matters. The agreement must comply with Philippine civil law requirements, particularly the Civil Code provisions on obligations and contracts, and typically includes detailed terms of settlement, release provisions, and specific covenants against future litigation.

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What is a Covenant Not To Sue Settlement Agreement?

The Covenant Not To Sue Settlement Agreement is a specialized legal instrument used in the Philippines when parties wish to definitively resolve disputes while ensuring protection against future litigation. This document is particularly valuable in situations where parties seek to terminate existing conflicts or prevent potential disputes from escalating into court proceedings. It combines the finality of a settlement agreement with the forward-looking protection of a covenant not to sue, making it especially useful in complex commercial disputes, employment matters, or corporate conflicts. The agreement must conform to Philippine legal requirements, including the Civil Code and relevant jurisprudence on settlements and releases. It typically incorporates comprehensive settlement terms, payment provisions, releases, and specific covenants against future litigation, while often addressing confidentiality and non-disparagement concerns.

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

1. Parties: Identifies and defines all parties to the agreement, including their legal capacity and complete details

2. Background: Describes the context of the dispute, any existing or potential claims, and the parties' desire to settle

3. Definitions: Defines key terms used throughout the agreement for clarity and consistency

4. Settlement Terms: Details the specific terms of settlement, including any payments, actions, or obligations required of each party

5. Covenant Not to Sue: The core provision where parties agree not to initiate or pursue legal action regarding the settled matters

6. Release of Claims: Comprehensive release of all claims related to the subject matter of the settlement

7. Representations and Warranties: Parties' assertions regarding their authority, understanding, and capacity to enter into the agreement

8. Confidentiality: Provisions regarding the confidentiality of the settlement terms and related information

9. Governing Law and Jurisdiction: Specifies Philippine law as governing law and defines jurisdiction for any disputes

10. Execution and Effect: Details about agreement execution, effective date, and binding nature

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

1. Non-Admission of Liability: Optional clause stating that the settlement does not constitute admission of liability or wrongdoing

2. Future Cooperation: Include when parties need to specify terms of ongoing relationship or future interactions

3. Tax Implications: Add when settlement involves significant monetary compensation or tax considerations

4. Insurance Provisions: Include when insurance companies are involved or insurance coverage is relevant to the settlement

5. Return of Property/Documents: Add when settlement requires exchange or return of property or documents

6. Non-Disparagement: Optional clause preventing parties from making negative statements about each other

7. Survival of Terms: Include when certain provisions need to survive the settlement agreement

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

1. Schedule A - Settlement Payment Details: Details of any monetary settlement, payment terms, and schedule

2. Schedule B - Released Claims: Detailed list of specific claims being released and settled

3. Schedule C - Required Actions: Specific actions required by each party as part of the settlement

4. Appendix 1 - Related Documents: List of relevant documents referenced in the agreement

5. Appendix 2 - Form of Release: Standard form of release to be executed by parties if required

6. Appendix 3 - Corporate Authorizations: Copies of corporate resolutions or authorizations if corporate parties involved

Authors

Alex Denne

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

Jurisdiction

Philippines

Publisher

Genie AI

Document Type

Release Agreement

Cost

Free to use
Relevant legal definitions



































Clauses






























Relevant Industries

Banking and Financial Services

Real Estate and Property Development

Manufacturing and Industrial

Technology and Software

Construction and Engineering

Professional Services

Healthcare and Medical

Retail and Consumer Goods

Energy and Utilities

Transportation and Logistics

Insurance

Telecommunications

Relevant Teams

Legal

Compliance

Risk Management

Corporate Governance

Human Resources

Finance

Executive Leadership

Operations

Administrative

Business Development

Relevant Roles

Legal Counsel

Corporate Secretary

Chief Legal Officer

Risk Manager

Compliance Officer

Chief Executive Officer

Chief Financial Officer

Business Development Manager

Human Resources Director

Operations Manager

Contract Administrator

Settlement Officer

Litigation Manager

Corporate Governance Officer

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,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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