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Consequential Damages Waiver

Consequential Damages Waiver Template for Philippines

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Key Requirements PROMPT example:

Consequential Damages Waiver

"I need a Consequential Damages Waiver for a software development agreement between my tech company and a manufacturing client in Manila, which should be reciprocal and specifically address data loss and system downtime scenarios."

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Document background
The Consequential Damages Waiver is essential in commercial relationships where parties wish to limit their potential liability exposure under Philippine law. This document is typically used when entering into business relationships that carry risks of significant indirect or consequential losses, such as supply contracts, service agreements, or construction projects. It helps parties allocate risks effectively by clearly defining and waiving specific types of damages while preserving rights to direct damages. The document must comply with Philippine Civil Code requirements, particularly Articles 1170 and 2201, and consider the doctrine of unconscionability. It's commonly used alongside main commercial agreements to provide clarity on damage limitations and risk allocation between parties.
Suggested Sections

1. Parties: Identification of the parties entering into the waiver agreement

2. Background: Context of the business relationship and circumstances leading to this waiver

3. Definitions: Clear definitions of key terms, particularly 'consequential damages', 'direct damages', and other relevant terms

4. Scope of Waiver: Detailed description of what damages are being waived, with specific reference to consequential, indirect, and special damages

5. Exceptions to Waiver: Specific circumstances where the waiver will not apply, such as gross negligence or willful misconduct

6. Acknowledgment: Statement that both parties understand the implications of the waiver and have had the opportunity to seek legal counsel

7. Governing Law: Specification that Philippine law governs the agreement and its interpretation

8. Severability: Provision stating that if any part of the waiver is found unenforceable, the rest remains valid

9. Entire Agreement: Confirmation that this document represents the complete agreement regarding the waiver of consequential damages

10. Execution: Signature blocks and execution requirements

Optional Sections

1. Reciprocal Nature: Section specifying that the waiver applies to both parties equally - include when the waiver is meant to be mutual

2. Duration: Specific timeframe for the waiver - include when the waiver is not intended to be perpetual

3. Related Agreements: Reference to other agreements between the parties - include when the waiver relates to specific existing contracts

4. Insurance: Insurance requirements and relationship to the waiver - include when insurance coverage is relevant to the waiver

5. Alternative Dispute Resolution: Procedures for resolving disputes - include when parties prefer arbitration or mediation

6. Notice Requirements: Procedures for providing notice of potential claims - include in complex commercial relationships

Suggested Schedules

1. Schedule A - Defined Damages: Detailed list of specific types of consequential damages being waived

2. Schedule B - Related Agreements: List of specific agreements to which this waiver applies

3. Appendix 1 - Examples: Illustrative examples of what constitutes consequential versus direct damages in the context of the parties' relationship

4. Appendix 2 - Excluded Claims: Detailed list of specific claims or damages that are explicitly not waived

Authors

Alex Denne

Head of Growth (Open Source Law) @ 黑料视频 | 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

Manufacturing

Technology

Construction

Professional Services

Retail

Wholesale

Information Technology

Telecommunications

Energy

Infrastructure

Healthcare

Financial Services

Real Estate

Transportation

Logistics

Mining

Agriculture

Education

Relevant Teams

Legal

Procurement

Risk Management

Compliance

Finance

Operations

Commercial

Business Development

Supply Chain

Contract Administration

Corporate Governance

Relevant Roles

Chief Legal Officer

General Counsel

Legal Director

Contract Manager

Risk Manager

Commercial Director

Chief Financial Officer

Procurement Manager

Operations Director

Business Development Manager

Project Manager

Supply Chain Manager

Compliance Officer

Corporate Secretary

In-House Counsel

Legal Operations Manager

Industries






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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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