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Future Purchase Agreement for Philippines

Future Purchase Agreement Template for Philippines

A Future Purchase Agreement under Philippine law is a comprehensive commercial contract that establishes the framework for future purchases of goods or services between parties. The agreement sets out the terms and conditions governing subsequent purchase transactions, including pricing mechanisms, delivery terms, quality standards, and minimum purchase commitments. It provides legal certainty under Philippine jurisdiction while maintaining flexibility for ongoing business relationships, incorporating relevant provisions from the Civil Code of the Philippines and related commercial legislation.

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Future Purchase Agreement

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What is a Future Purchase Agreement?

The Future Purchase Agreement is utilized when parties wish to establish a long-term commercial relationship for the regular purchase of goods or services in the Philippines. This document is particularly valuable when businesses need to secure future supply arrangements while maintaining flexibility in specific order quantities. It typically includes provisions for pricing mechanisms, minimum purchase commitments, delivery schedules, and quality standards, all structured to comply with Philippine commercial law. The agreement serves as a master document that governs subsequent purchase orders, reducing the need for repeated contract negotiations while providing certainty and protection for both buyers and sellers in their ongoing business relationship.

What sections should be included in a Future Purchase Agreement?

1. Parties: Identifies and provides full details of the parties entering into the agreement

2. Background: Sets out the context and purpose of the agreement

3. Definitions: Defines key terms used throughout the agreement

4. Subject Matter: Describes the goods or services to be purchased in the future

5. Purchase Commitment: Details the commitment to purchase, including minimum quantities if applicable

6. Pricing and Payment Terms: Specifies the agreed pricing mechanism, payment schedule, and terms

7. Delivery Terms: Outlines the delivery schedule, location, and conditions

8. Quality Standards: Specifies the required quality standards and specifications of the goods/services

9. Term and Termination: Sets out the duration of the agreement and termination provisions

10. Force Majeure: Addresses circumstances beyond parties' control that may affect performance

11. Governing Law and Jurisdiction: Specifies Philippine law as governing law and sets jurisdiction for disputes

12. Entire Agreement: Standard boilerplate confirming this document represents the complete agreement

What sections are optional to include in a Future Purchase Agreement?

1. Performance Security: Required when one party needs to provide security for their performance obligations

2. Price Adjustment Mechanism: Include when prices may need to be adjusted during the agreement term based on specific factors

3. Exclusivity: Include when the buyer commits to purchasing exclusively from the seller

4. Insurance Requirements: Include when specific insurance coverage is required for the goods or performance

5. Intellectual Property Rights: Include when the purchase involves products with IP components

6. Confidentiality: Include when parties need to exchange sensitive information

7. Assignment and Subcontracting: Include when these rights need to be specifically addressed

8. Compliance with Laws: Include when specific regulatory compliance needs to be highlighted

What schedules should be included in a Future Purchase Agreement?

1. Schedule A - Product Specifications: Detailed technical specifications of the goods to be purchased

2. Schedule B - Pricing Schedule: Detailed breakdown of prices, including any volume discounts or pricing tiers

3. Schedule C - Delivery Schedule: Detailed timeline for deliveries, including specific dates or intervals

4. Schedule D - Quality Standards and Testing Procedures: Detailed quality requirements and testing protocols

5. Schedule E - Key Performance Indicators: Metrics for measuring performance under the agreement

6. Appendix 1 - Form of Purchase Order: Template for individual purchase orders under the agreement

7. Appendix 2 - Contact Details: List of key contacts and authorized representatives for both parties

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Philippines

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions









































Clauses








































Relevant Industries

Manufacturing

Retail

Agriculture

Construction

Energy

Mining

Technology

Telecommunications

Food and Beverage

Pharmaceutical

Automotive

Electronics

Textiles

Consumer Goods

Relevant Teams

Procurement

Legal

Finance

Operations

Supply Chain

Commercial

Risk Management

Compliance

Business Development

Vendor Management

Relevant Roles

Procurement Manager

Supply Chain Director

Commercial Director

Legal Counsel

Contract Manager

Chief Financial Officer

Operations Manager

Purchasing Officer

Business Development Manager

Category Manager

Vendor Relations Manager

Corporate Counsel

Chief Operating Officer

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

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