Document background
The Waiver of Arbitration Agreement is a crucial document used in Philippine business and legal practice when parties who previously agreed to arbitration wish to pursue traditional court litigation instead. This document becomes relevant when parties determine that court litigation would be more advantageous than arbitration, perhaps due to changed circumstances, cost considerations, or the nature of the dispute. The waiver must comply with Philippine law, particularly the Alternative Dispute Resolution Act of 2004 and the Civil Code, and requires clear documentation of the parties' informed consent. It typically includes references to the original arbitration agreement, explicit waiver declarations, acknowledgments of consequences, and may need to address specific disputes or partial waivers. The document is particularly important in commercial relationships where parties need to formally document their decision to abandon arbitration in favor of court proceedings.
