Promissory Note Sample for Tuition Fee Philippines

PROMISSORY NOTE: TUITION FEE OBLIGATION

Document ID: PN-EDU-[YYYY]-[SEQ#]
Effective Date: [Effective Date]
Version: 1.0
Governing Jurisdiction: Republic of the Philippines

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LEGAL DISCLAIMER

This document is a standardized template prepared for educational and reference purposes. It constitutes a legally binding financial instrument under Philippine Law (primarily the Civil Code of the Philippines and the Negotiable Instruments Law). This does not constitute formal legal advice. Users are strongly advised to consult with counsel licensed in the Philippines to ensure compliance with current Department of Education (DepEd) or Commission on Higher Education (CHED) regulations, as well as specific institutional policies regarding student tuition arrears.

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1. PARTIES

This Promissory Note (“Note”) is made and entered into on this [Day] day of [Month], [Year] by and between:

THE PAYEE (EDUCATIONAL INSTITUTION):
[School/University Full Legal Name], an educational institution duly organized and existing under the laws of the Republic of the Philippines, with principal office address at [School Physical Address], represented herein by its [Authorized Signatory Title], [Authorized Signatory Name], hereinafter referred to as the “Payee”.

THE PAYOR (STUDENT/GUARDIAN):
[Full Legal Name of Student or Guardian], of legal age, [Single/Married], and with residential address at [Residential Address], hereinafter referred to as the “Payor”.

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2. PRINCIPAL AMOUNT AND ACKNOWLEDGMENT OF DEBT

The Payor hereby unconditionally promises to pay to the order of the Payee the principal sum of Philippine Pesos: [Amount in Words] (PHP [0.00]), representing unpaid tuition and miscellaneous fees for the [Semester/Term, Academic Year]. The Payor acknowledges that this debt is just, due, and demandable, and is incurred for educational services rendered or to be rendered.

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3. PAYMENT TERMS AND SCHEDULE

The Payor agrees to pay the Principal Amount according to the following schedule:

1. Initial Installment: PHP [Amount] due on [Date].
2. Subsequent Installments: PHP [Amount] due on [Date] of each succeeding [Month/Week] until the full amount is satisfied.
3. Manner of Payment: Payments shall be made via [Cash/Manager’s Check/Bank Transfer to Account Name: [Name], Bank: [Bank Name], Account Number: [Number]].

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4. LATE PAYMENTS AND INTEREST

In the event that the Payor fails to pay any installment on its due date, the unpaid balance shall automatically accrue a penalty charge of [Percentage, e.g., 2% or 5%] per month, computed from the date of default until the obligation is fully paid. The Payor shall further be liable for collection fees, including reasonable attorney’s fees equivalent to [Percentage, e.g., 10%] of the total outstanding amount, plus litigation costs should the Payee be compelled to seek judicial recourse.

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5. ACCELERATION CLAUSE

Notwithstanding the installment schedule provided in Section 3, the entire outstanding balance shall become immediately due and demandable without need of notice or demand if the Payor fails to pay two (2) consecutive installments, or upon the occurrence of an event of default as defined herein.

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6. REPRESENTATIONS AND WARRANTIES

The Payor represents and warrants that:

1. They have the full legal capacity and authority to enter into this Note.
2. The information provided regarding their financial status is true and correct.
3. They understand that failure to settle this obligation may result in the withholding of academic records, transcripts, diplomas, or the denial of enrollment in subsequent terms, subject to existing DepEd/CHED policies.

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7. GOVERNING LAW AND DISPUTE RESOLUTION

This Note shall be governed by and construed in accordance with the laws of the Republic of the Philippines. Any dispute arising out of or in connection with this Note shall be settled amicably through negotiation. Should negotiation fail, the parties agree to submit to the exclusive jurisdiction of the competent courts of [City/Municipality], Philippines, to the exclusion of all other venues.

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8. MISCELLANEOUS

1. Severability: If any provision of this Note is held to be invalid or unenforceable, the remaining provisions shall continue to be valid and enforceable.
2. Entire Agreement: This Note constitutes the entire agreement between the parties concerning the subject matter hereof and supersedes all prior agreements, oral or written.
3. Amendments: No modification or amendment to this Note shall be effective unless made in writing and signed by both parties.

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9. EXECUTION

FOR THE PAYEE (SCHOOL/INSTITUTION):
Signature: _____________________________________
Printed Name: [Authorized Signatory Name]
Title: [Title / Role]
Company: [School/University Full Legal Name]
Date: [Date]

FOR THE PAYOR (STUDENT/GUARDIAN):
Signature: _____________________________________
Printed Name: [Full Legal Name]
Title: [Student / Parent / Guardian]
Date: [Date]

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STEP-BY-STEP EXECUTION AND FILING GUIDE

1. Document Preparation:
   • Download this template as a .docx file.
   • Replace all bracketed [ ] information with actual data. Ensure the "Amount in Words" matches the numeric figure exactly to prevent ambiguity.
2. Verification of Authority:
   • If the Payor is a minor, the parent or legal guardian must sign as the "Payor" to ensure enforceability under the Civil Code.
   • Verify that the school representative signing on behalf of the Payee has a Board Resolution or Secretary’s Certificate authorizing them to execute financial contracts.
3. Execution:
   • Print two (2) original copies.
   • If using digital signatures, utilize an platform compliant with the Philippine Electronic Commerce Act (RA 8792), such as DocuSign or Adobe Sign, ensuring audit logs are saved.
   • Ensure the document is witnessed by at least two (2) individuals to facilitate proof of execution.
4. Record Retention:
   • The original "wet-ink" copy or authenticated digital original must be stored in the institution’s Finance or Registrar’s vault for the duration of the statute of limitations for written contracts (10 years under the Civil Code).