A Variation Agreement is essential in Philippine business practice when parties need to modify an existing contract without completely replacing it. This document type is commonly used when circumstances change, requiring adjustments to commercial terms, timelines, scope of work, or other contractual provisions. The agreement must comply with Philippine Civil Code requirements, particularly Articles 1292 and 1306 regarding contract modifications and novation. It typically includes detailed references to the original agreement, specific variations being made, and confirmation of which original terms remain unchanged. The Variation Agreement is particularly important in long-term commercial relationships where flexibility is needed to accommodate changing business needs while maintaining legal certainty.
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1. Parties: Identification of all parties to the variation agreement, matching those in the original agreement or identifying any changes in parties
2. Background: Recitals identifying the original agreement, its date, and the reason for variation
3. Definitions: Key terms used in the variation agreement, including reference to definitions in the original agreement
4. Reference to Original Agreement: Specific identification of the agreement being varied, including its date and parties
5. Effective Date: The date from which the variations will take effect
6. Variations: Detailed description of each specific change to the original agreement
7. Confirmation of Other Terms: Confirmation that all other terms of the original agreement remain in full force and effect
8. Governing Law: Confirmation that Philippine law governs the variation agreement
9. Counterparts: Provision for execution in multiple counterparts
10. Execution: Signature blocks for all parties
1. Conditions Precedent: Include when variations are subject to certain conditions being met before becoming effective
2. Consents and Approvals: Include when third-party approvals are required for the variations
3. Costs and Expenses: Include when there are specific arrangements for bearing the costs of implementing the variations
4. Representations and Warranties: Include when parties need to make new or confirm existing representations regarding the variation
5. Transitional Provisions: Include when specific arrangements are needed to implement the variations over time
6. Third Party Rights: Include when variations affect rights of third parties under the original agreement
1. Schedule of Variations: Detailed table or list showing original clauses and their varied versions
2. Amended and Restated Clauses: Full text of clauses as they will read after the variation
3. Required Consents and Approvals: List of all required third-party consents and their status
4. Implementation Timeline: Schedule of dates and actions for implementing the variations
5. Original Agreement: Copy of the original agreement being varied
Relevant legal definitions
Clauses
Relevant Industries
Construction and Infrastructure
Real Estate
Manufacturing
Information Technology
Financial Services
Telecommunications
Energy and Utilities
Professional Services
Retail and Distribution
Healthcare
Education
Transportation and Logistics
Relevant Teams
Legal
Procurement
Finance
Operations
Commercial
Risk and Compliance
Business Development
Project Management
Contract Administration
Corporate Secretariat
Relevant Roles
Legal Counsel
Contract Manager
Commercial Director
Project Manager
Business Development Manager
Chief Financial Officer
Operations Director
Procurement Manager
Compliance Officer
Risk Manager
General Manager
Chief Executive Officer
Account Manager
Company Secretary
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