Release And Discharge Letter

Release And Discharge Letter Template for Philippines

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Key Requirements PROMPT example:

"I need a Release and Discharge Letter under Philippine law for a departing senior employee who will receive a severance package of 2 million PHP on March 15, 2025, releasing the company from all employment-related claims."

Document background

The Release and Discharge Letter is a crucial legal instrument in Philippine business and personal transactions, used to formally document the release of obligations, claims, or liabilities between parties. This document type is particularly important in situations involving settlement of disputes, completion of contracts, employment separations, or resolution of financial obligations. Under Philippine law, it must comply with the Civil Code's requirements for valid contracts and releases, including clear consent, object, and consideration. The document typically specifies the scope of release, any consideration provided, and includes necessary formalities for enforcement. It's commonly used in both corporate and individual contexts, providing legal certainty and protection for all parties involved. The Release and Discharge Letter should be carefully drafted to ensure it meets all jurisdictional requirements and effectively achieves the parties' intended purpose.

Suggested Sections

1. Letter Header: Date, recipient's name and address, and formal letter greeting

2. Subject Line: Clear indication that this is a Release and Discharge Letter

3. Identification of Parties: Clear identification of the releasing party and the party being released

4. Reference to Original Agreement/Obligation: Details of the original agreement, transaction, or circumstance that is being released

5. Release Statement: Clear and unequivocal statement of release and discharge from obligations, claims, or liabilities

6. Consideration: Statement of what is being given in exchange for the release (if applicable)

7. Governing Law: Reference to Philippine law as the governing law

8. Signature Block: Space for signatures, names, and dates for all parties

Optional Sections

1. Acknowledgment of Payment: Include when the release is given in exchange for payment or settlement amount

2. Confidentiality Clause: Include when parties wish to keep the terms of the release confidential

3. Non-admission of Liability: Include when the released party wants to explicitly state that the release does not constitute admission of liability

4. Reservation of Rights: Include when certain rights or claims are specifically excluded from the release

5. Return of Property: Include when physical items or documents need to be returned as part of the release

6. Future Cooperation: Include when ongoing cooperation between parties is required for certain matters

Suggested Schedules

1. Schedule A - List of Released Claims: Detailed itemization of specific claims or obligations being released, if multiple or complex

2. Schedule B - Payment Details: Details of any settlement payments, including payment schedule if applicable

3. Appendix 1 - Related Documents: Copies or references to relevant agreements or documents being released

4. Appendix 2 - Authorization Documents: Any required corporate or legal authorizations for executing the release

Authors

Alex Denne

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

alex.den.21@genieai.co

Relevant legal definitions

Clauses

Relevant Industries

Legal Services

Financial Services

Insurance

Banking

Real Estate

Construction

Manufacturing

Healthcare

Technology

Retail

Professional Services

Human Resources

Education

Telecommunications

Transportation and Logistics

Relevant Teams

Legal

Human Resources

Finance

Compliance

Risk Management

Operations

Corporate Secretariat

Claims Administration

Contract Management

Business Development

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Relevant Roles

Legal Counsel

Corporate Secretary

Human Resources Manager

Finance Director

Contract Administrator

Risk Manager

Compliance Officer

Claims Manager

Business Development Manager

Project Manager

Operations Director

Settlement Officer

Account Manager

General Manager

Chief Legal Officer

Chief Financial Officer

HR Director

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Authors

Alex Denne

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