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Hardship Waiver

Hardship Waiver Template for Philippines

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Key Requirements PROMPT example:

Hardship Waiver

"I need a Hardship Waiver for my manufacturing company to temporarily modify payment obligations with our main supplier due to factory damage from a recent typhoon, with the waiver period to run from January 1, 2025, to June 30, 2025."

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Document background
The Hardship Waiver is a crucial legal instrument in Philippine business and civil relationships, designed to address situations where unforeseen circumstances create substantial difficulty in fulfilling contractual obligations. This document becomes relevant when one party experiences significant challenges such as financial distress, medical emergencies, natural disasters, or other extraordinary circumstances that impact their ability to meet contractual commitments. The waiver must comply with Philippine Civil Code requirements, particularly Articles 1306-1308 regarding contract validity and modifications. It serves as a formal acknowledgment of the hardship situation and provides a structured framework for temporary or permanent relief from specific obligations while maintaining legal validity and protecting both parties' interests. The document is particularly important in the Philippine context, where courts generally favor equitable solutions and recognize the doctrine of rebus sic stantibus (changed circumstances).
Suggested Sections

1. Parties: Identification of the party granting the waiver and the party receiving the benefit of the waiver, including complete legal names and addresses

2. Background: Context of the relationship between parties and circumstances leading to the hardship situation

3. Definitions: Clear definitions of key terms used in the waiver, including 'hardship' and specific obligations being waived

4. Nature of Hardship: Detailed description of the hardship situation, including its cause, duration, and impact

5. Scope of Waiver: Specific rights, obligations, or requirements being waived, with clear boundaries and limitations

6. Duration: Time period for which the waiver is valid, including start and end dates if applicable

7. Representations and Warranties: Statements confirming the truth of the hardship claim and capacity to enter into the waiver

8. Governing Law: Confirmation that the waiver is governed by Philippine law and specific applicable statutes

9. Execution: Signature blocks and execution requirements, including witness provisions if required

Optional Sections

1. Consideration: Details of any consideration provided in exchange for the waiver, if applicable

2. Confidentiality: Provisions regarding confidentiality of the hardship situation and waiver terms, if privacy is required

3. Revival Rights: Conditions under which waived rights may be revived or reinstated, if applicable

4. Dispute Resolution: Specific procedures for resolving disputes related to the waiver, if desired

5. Reporting Requirements: Any ongoing obligation to report on the hardship situation or recovery efforts

6. Third Party Rights: Impact of the waiver on rights of third parties, if relevant

7. Severability: Clause ensuring remaining provisions stay valid if part of waiver is found unenforceable

Suggested Schedules

1. Schedule A - Evidence of Hardship: Documentation proving the hardship situation (financial statements, medical records, etc.)

2. Schedule B - Affected Obligations: Detailed list of specific obligations being waived or modified

3. Schedule C - Recovery Plan: If applicable, plan for addressing or recovering from the hardship situation

4. Appendix 1 - Original Agreement: Copy of the original agreement containing the obligations being waived

5. Appendix 2 - Supporting Declarations: Sworn statements or affidavits supporting the hardship claim

Authors

Alex Denne

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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Agreement
Applicable Law
Business Day
Confidential Information
Effective Date
Event of Hardship
Force Majeure
Hardship Period
Obligations
Original Contract
Parties
Philippine Law
Recovery Plan
Relief Period
Representations
Supporting Documents
Termination Date
Waived Rights
Waiver
Material Adverse Effect
Notice
Related Parties
Governing Law
Default
Cure Period
Compliance Certificate
Good Faith
Extraordinary Circumstance
Financial Distress
Modification
Original Obligations
Performance
Remedial Actions
Resolution Period
Waiver Certificate
Clauses
Interpretation
Definitions
Hardship Declaration
Waiver Scope
Duration
Rights and Obligations
Representations and Warranties
Acknowledgment
Consideration
Conditions Precedent
Evidence Requirements
Reporting Obligations
Confidentiality
Data Protection
Notice Requirements
Governing Law
Dispute Resolution
Force Majeure
Severability
Amendment
Assignment
Entire Agreement
Counterparts
Good Faith
Compliance with Law
Third Party Rights
Termination
Reinstatement
Recovery Provisions
Documentation Requirements
Relevant Industries

Banking and Finance

Real Estate

Education

Healthcare

Manufacturing

Retail

Construction

Agriculture

Information Technology

Transportation

Hospitality

Public Sector

Relevant Teams

Legal

Human Resources

Compliance

Risk Management

Finance

Operations

Corporate Affairs

Credit Management

Customer Service

Business Development

Relevant Roles

Legal Counsel

Compliance Officer

Human Resources Manager

Contract Administrator

Risk Manager

Chief Financial Officer

Business Development Manager

Property Manager

Credit Officer

Operations Manager

General Manager

Corporate Secretary

Debt Collection Officer

Account Manager

Industries
Civil Code of the Philippines (Republic Act No. 386): Primary law governing contracts, obligations, and waivers in the Philippines. Particularly relevant are Articles 1306-1308 on contract validity and Articles 1231-1236 on the extinguishment of obligations.
Philippine Constitution of 1987: Fundamental law establishing basic rights and public policy considerations that may affect the validity and enforceability of waivers.
Labor Code of the Philippines (Presidential Decree No. 442): Governs employment relationships and workers' rights, including provisions on waivers of labor standards and benefits.
Consumer Act of the Philippines (Republic Act No. 7394): Protects consumer rights and regulates unfair contract terms, relevant if the hardship waiver relates to consumer transactions.
Truth in Lending Act (Republic Act No. 3765): Relevant if the hardship waiver involves financial obligations or loan modifications, ensuring transparency in financial transactions.
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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