Christine Elaine M.

Honrade
JD1

1. “No strike, no lock out” Clause

A no-strike clause is a provision in a collective bargaining contract in which the union

promises that during the life of the contract the employees will not engage in strikes, slowdowns,
or other job actions. A union often agrees to such a clause in exchange for a grievance arbitration
provision.

Example:
The ABC Company Employees Organization agrees that during the existence of this
agreement, unless the ABC Company fails to comply with an arbitration award, not to strike
against, picket, or boycott the ABC Company for any reason whatsoever, and to order its
members to perform their obligations to ABC Company hereunder, and to use its best efforts to
get the employees to perform such obligations. The ABC Company agrees not to engage in any
lockout, unless the ABC Company Employees Organization fails to comply with an arbitration
award.

2. Confidentiality Clause

Confidentiality Clause is a part of an agreement in which the employee or the employer

involved agree not to give particular information to other people or company.

Example:
Any employee disclosing confidential/patient records or information to any unauthorized
person or persons will render the employee subject to disciplinary action, which may result in
dismissal.

3. Forfeiture Clause

Forfeiture clause is a provision in a contract to the effect that under certain circumstances,
one party must forfeit something to the other. However such provisions are often said to be void.

Example:
If Smartnet fails to pay the full price of the land within five days after receipt of a notice
of delinquency, it would automatically forfeit to Piltel 10% of the P180 million down payment or
P18 million and the contract shall be without force and effect.

4. Acceleration Clause

An acceleration clause is a contractual provision which allows the holder to declare the
remaining balance due and payable immediately upon the occurrence of a default in the
obligation.

Example:
 In the event of default in the payment of any of the installments or interest when due as
herein provided, time being of the essence hereof, the holder of this note may, without notice or
demand, declare the entire principal sum then unpaid immediately due and payable.

5. Severability Clause

A severability clause is a contract provision that keeps the remaining portions of the
contract in force should a court declare one or more of its provisions unconstitutional, void, or
unenforceable.

Example:
In case any provision in this contract shall be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby, and such provision shall be ineffective only to the extent of such invalidity,
illegality or unenforceability.