Settlement Offer Letter Template for Philippines

The Settlement Offer Letter is a critical document in Philippine business and legal practice, used when parties seek to resolve disputes without full litigation. This document type is particularly relevant when there is a desire to achieve an amicable resolution while maintaining professional relationships and minimizing legal costs. A Settlement Offer Letter typically includes specific monetary terms, conditions for settlement, release provisions, and deadlines for acceptance. Under Philippine law, specifically the Civil Code and Alternative Dispute Resolution Act, such offers can form the basis of a legally binding agreement once accepted. The document is commonly used in various contexts, from commercial disputes to employment matters, and must be carefully drafted to ensure enforceability and clarity of terms while complying with Philippine legal requirements for settlement agreements.

1. Letterhead and Date: Company letterhead (if applicable) and current date following Philippine standard format

2. Recipient Details: Complete name and address of the recipient, including any relevant titles or designations

3. Subject Line: Clear reference to the dispute or claim being settled, including any relevant case numbers or identifiers

4. Salutation: Formal greeting to the recipient

5. Opening Paragraph: Reference to the dispute and confirmation that this is a formal settlement offer

6. Settlement Amount: Clear statement of the proposed settlement amount and payment terms

7. Settlement Terms: Detailed outline of all key terms and conditions of the settlement

8. Release Provisions: Description of what claims will be released upon acceptance of the settlement

9. Deadline for Response: Clear statement of when the offer expires

10. Closing Statement: Standard closing with contact information for response or questions

11. Signature Block: Full name, title, and signature of the authorized representative making the offer