Sample Compromise Agreement

COMPROMISE AGREEMENT This Agreement is entered into this ____ of _____ 20__, in the City of Cebu, Philippines, by and between: ____________________, of legal age, Filipino, and residing at __________________________, Cebu, hereafter referred to as the FIRST PARTY; AND ____________________, of legal age, Filipino and residing at __________________________, Cebu City Philippines hereafter referred to as the SECOND PARY.

WITNESSETH, THAT: WHEREAS, FIRST PARTY and SECOND PARTY are the accused and the private complainant in Criminal Case. No. R-_______ entitled “People of the Philippines vs. ___________” for Reckless Imprudence Resulting in Serious Physical Injury and Damage to Property pending before the Municipal Trial Court in Cities in the City of ______________ (hereafter the “Case”) respectively; WHEREAS, the Case stemmed from a vehicular accident (the “Incident”) which occurred between a Toyota Corolla sedan with Plate No. _________ (the “Car”), then driven by the FIRST PARTY and a motorcycle with several passengers and with Plate No. ___________, then driven by _______________, the husband of SECOND PARTY on ________ 20__; WHEREAS, as a result of the Incident and upon the complaint of the SECOND PARTY, the Case was instituted against the FIRST PARTY; WHEREAS, during the pendency of the Case several opportunities for discussions and negotiations of a possible compromise on matters that are allowed to be compromised by existing law were given to the parties by the court; WHEREAS, after such negotiations and discussions the parties mutually realized and deem it best and convenient to resolve the civil aspect of the case in an amicable manner in order to avoid a protracted litigation; WHEREAS, the SECOND PARTY had manifested its willingness to be indemnified a reasonable value for whatever damage, suffering or loss that it had sustained by reason of the Incident and the FIRST PARTY is likewise willing to meet the demands of the SECOND PARTY; WHEREAS, both parties have come to a mutually beneficial arrangement as to the method of payment and mode of settlement of the civil aspect for its convenient and immediate disposition; NOW THEREFORE, for and in consideration of the mutual covenants and agreements herein established, the parties hereto agree as follows:

AMOUNT OF DAMAGE SECOND PARTY, by its own independent and voluntary assessment categorically expresses that the only remaining balance of the damage, loss or suffering it incurred as a result of the Incident, amounts to FIFTY THOUSAND PESOS (PhP50,000.00) which the FIRST PARTY is willing to shoulder and pay. INDEMNITY FIRST PARTY, mindful of such loss and desirous to alleviate SECOND PARTY’s difficult condition as a result of the Incident agrees to pay the abovementioned amount in a manner and term provided hereunder: (i)

First half of the amount or TWENTY FIVE THOUSAND PESOS (PhP 25,000.00) shall be paid and given to the SECOND PARTY at the execution of this Agreement, and receipt of which is hereunder acknowledged by the SECOND PARTY;

(ii)

The remaining balance of TWENTY FIVE THOUSAND PESOS (PhP 25,000.00) shall only be paid upon the actual receipt of the payment of the insurance claim from the insurance company by the FIRST PARTY and/or owner of the Car. OTHER MATTERS

FIRST PARTY’S payment shall not be taken to mean as an admission of any criminal liability on its part. The execution of this Agreement by the parties however, hereby absolves and releases the FIRST PARTY from any civil liability arising from the Incident if any. SECOND PARTY recognized further that she had been compensated fully and adequately for any loss, suffering or injury that she might have endured in connection with the Incident and therefore undertakes not to file any claim or suit against the FIRST PARTY or any other person or entity related to or involved in any manner with the Incident, including in particular the owner of the Car. Upon the execution of this Agreement, the Affidavit of Desistance executed by the SECOND PARTY shall already be filed in the Case and the SECOND PARTY shall abide by the matters declared therein as well as the terms of the Acknowledgment, Release and Waiver executed by the SECOND PARTY on ___________ and this Agreement. Both parties have executed this Agreement by their own voluntary act and deed and in their mutually agreed terms. Both parties warrant further, that they did so with the full understanding of its nature and its consequence to the pending Case. _____________________ FIRST PARTY

____________________ SECOND PARTY

Assisted by:

Assisted by:

ATTY. ________________

ATTY. _________________

WITNESSES: ____________________

_____________________