An Affidavit of Cancellation with No Financial Obligation is a crucial document in Philippine business and legal practice, used when parties need to formally terminate a contractual relationship while ensuring clear documentation that no financial obligations remain outstanding. This document type is particularly important in protecting both parties from future claims and providing clear evidence of the contract's termination. The affidavit must be executed in compliance with Philippine law, including the Civil Code, Rules of Court, and notarial regulations. It is commonly used in various business scenarios, from service agreements to lease contracts, where parties need to establish a clean break from their contractual obligations. The document typically includes detailed identification of the contract being cancelled, declarations regarding the absence of financial obligations, and must be properly notarized to ensure its validity.
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1. Title and Jurisdiction: Specifies the document type and jurisdiction (Republic of the Philippines)
2. Affiant Information: Full legal name, age, citizenship, civil status, and complete address of the person making the affidavit
3. Competency Declaration: Statement affirming the affiant's legal capacity to execute the affidavit
4. Contract Identification: Details of the contract being cancelled including date, parties involved, and subject matter
5. Declaration of Cancellation: Clear statement of intent to cancel the contract and confirmation that all parties agree to the cancellation
6. No Financial Obligation Statement: Explicit declaration that there are no outstanding financial obligations between the parties
7. Verification and Certification: Standard verification of truthfulness and certification against forum shopping
8. Jurat: Notarial section where the affiant swears to the truthfulness of the contents
1. Mutual Agreement Reference: Include when there is a separate mutual agreement document regarding the cancellation
2. Third Party Clearance: Include when third parties' rights or interests were involved in the original contract
3. Property Return Declaration: Include when physical properties or documents need to be returned between parties
4. Prior Payments Declaration: Include when there is a need to acknowledge previous payments made but confirm no remaining obligations
5. Waiver of Claims: Include when parties wish to explicitly waive any future claims related to the contract
1. Annex A - Original Contract: Copy of the original contract being cancelled
2. Annex B - Proof of Identity: Valid government ID of the affiant
3. Annex C - Authority to Cancel: If applicable, authorization documents proving the affiant's authority to cancel the contract
4. Annex D - Supporting Documents: Any relevant correspondence or documents supporting the cancellation without financial obligation
5. Annex E - Proof of Notice: If applicable, proof that other parties were properly notified of the cancellation
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