The Letter of Revocation of Contract is a crucial legal instrument used in the Philippine business environment when one party needs to formally terminate an existing contractual relationship. This document, governed by the Civil Code of the Philippines (Republic Act No. 386), particularly Articles 1191 and 1231, provides a formal mechanism for contract termination. It is typically used when there has been a material breach, when circumstances make the contract impossible to fulfill, or when parties mutually agree to end their contractual relationship. The letter must clearly state the grounds for revocation, reference the original contract, specify the effective date of termination, and outline any remaining obligations or transition requirements. This document type is essential for maintaining clear business records and protecting legal interests in contract termination scenarios.
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1. Letter Header: Formal business letter header including date, sender's details, recipient's details, and reference number
2. Contract Reference: Clear identification of the original contract being revoked, including its title, date, and parties involved
3. Statement of Revocation: Express and unequivocal statement of contract revocation
4. Legal Basis: Citation of the relevant clause in the original contract or applicable law that permits revocation
5. Effective Date: Clear statement of when the revocation takes effect
6. Return of Properties: Instructions regarding the return of any properties, documents, or materials exchanged during the contract period
7. Closing: Formal closing, signature block, and contact information for further communication
1. Outstanding Obligations: Include when there are remaining payments, duties, or obligations that need to be addressed
2. Confidentiality Reminder: Include when the original contract contained confidentiality provisions that survive termination
3. Dispute Resolution: Include when there are pending disputes or potential issues that need to be addressed
4. Mutual Release: Include when both parties agree to release each other from future claims
5. Transition Arrangements: Include when there's a need for a transition period or handover process
1. Copy of Original Contract: Attachment of the original contract being revoked for reference
2. Proof of Breach: If revocation is due to breach, documentation evidencing the breach
3. Statement of Accounts: If there are financial matters involved, a detailed statement of outstanding amounts or settled accounts
4. Handover Schedule: If applicable, a detailed schedule of items or responsibilities to be handed over
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