The Non-Compromise Agreement is a specialized legal document used in the Philippine jurisdiction when parties need to formally establish their intention not to compromise on specific matters, claims, or rights. This document is particularly valuable in situations involving ongoing business relationships where certain positions must remain firm, during complex negotiations where specific aspects are non-negotiable, or in dispute resolution scenarios where parties wish to preserve certain rights while settling others. The agreement must comply with Philippine Civil Code requirements and typically includes detailed specifications of non-compromising matters, enforcement mechanisms, and consequences of breach. It's commonly used in corporate transactions, business disputes, and situations where maintaining a firm position on certain issues is crucial while continuing business operations. The document serves as a legally binding commitment under Philippine law, providing clarity and certainty regarding matters that are not subject to future compromise or negotiation.
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1. Parties: Identification and details of all parties entering into the agreement
2. Background: Context of the agreement, including any existing disputes, claims, or circumstances leading to the non-compromise agreement
3. Definitions: Definitions of key terms used throughout the agreement
4. Non-Compromise Obligations: Core section detailing the specific matters, claims, or rights that parties agree not to compromise on
5. Duration: Period for which the non-compromise obligations remain in effect
6. Representations and Warranties: Statements of fact and assurances made by each party
7. Enforcement: Mechanisms for enforcing the agreement and consequences of breach
8. Governing Law and Jurisdiction: Specification of Philippine law as governing law and designation of courts having jurisdiction
9. Notices: Process and requirements for serving formal notices under the agreement
10. General Provisions: Standard boilerplate clauses including severability, entire agreement, and amendments
1. Related Proceedings: Details of any ongoing legal proceedings related to the non-compromise matters - include when there are active legal cases
2. Confidentiality: Obligations regarding confidentiality of the agreement and related matters - include when sensitive information is involved
3. Third Party Rights: Provisions regarding rights of third parties affected by the agreement - include when third party interests are involved
4. Multiple Jurisdictions: Provisions dealing with multiple jurisdictional aspects - include when parties are from different jurisdictions
5. Costs and Legal Fees: Allocation of costs and legal fees - include when there are significant costs to be addressed
1. Schedule 1 - Specified Claims: Detailed list of claims or matters subject to non-compromise
2. Schedule 2 - Related Proceedings: Details of any ongoing or potential legal proceedings
3. Schedule 3 - Authorized Representatives: List of authorized representatives for each party with their contact details
4. Appendix A - Supporting Documents: Copies of relevant documents referenced in the agreement
5. Appendix B - Form of Notice: Template for formal notices under the agreement
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