The Purchase And Supply Agreement is a crucial commercial document used to establish and regulate ongoing supply relationships between businesses operating in the Philippines. This agreement is essential when parties intend to enter into a continuing supply arrangement rather than conducting one-off purchases. It provides a comprehensive framework covering all aspects of the supply relationship, including ordering procedures, quality standards, delivery terms, and payment conditions, while ensuring compliance with Philippine laws including the Civil Code, Consumer Act, and relevant commercial regulations. The document is particularly important for businesses requiring regular supply of materials, goods, or products, and helps minimize risks while providing clear guidelines for both parties' obligations and rights under Philippine jurisdiction.
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1. Parties: Identifies the contracting parties with their complete legal names, addresses, and registration details
2. Background: Sets out the context of the agreement and brief description of the parties' business relationship
3. Definitions: Defines key terms used throughout the agreement for clarity and consistency
4. Supply Obligations: Details the supplier's obligations to provide products and the purchaser's commitment to purchase
5. Ordering Process: Specifies the procedure for placing and accepting orders, including minimum order quantities if applicable
6. Pricing and Payment: States the prices of products, payment terms, invoicing process, and any applicable taxes
7. Delivery and Risk: Specifies delivery terms, timelines, logistics arrangements, and transfer of risk
8. Quality and Specifications: Defines product specifications, quality standards, and compliance requirements
9. Warranties: Sets out warranties regarding product quality, fitness for purpose, and compliance with laws
10. Term and Termination: Specifies the duration of the agreement and circumstances for termination
11. Confidentiality: Protects confidential information exchanged between the parties
12. Force Majeure: Addresses circumstances beyond parties' control that may affect performance
13. Governing Law: Specifies Philippine law as governing law and jurisdiction for disputes
14. General Provisions: Includes standard boilerplate clauses like notices, amendments, and entire agreement
1. Exclusivity: Include when the supplier is granted exclusive rights or the purchaser commits to exclusive purchasing
2. Minimum Purchase Commitments: Include when the purchaser must commit to minimum purchase quantities
3. Price Review Mechanism: Include when parties want to establish formal price review procedures
4. Storage and Warehousing: Include when specific storage requirements or warehousing arrangements are needed
5. Insurance Requirements: Include when specific insurance coverage needs to be maintained by either party
6. Intellectual Property: Include when the supply involves branded products or licensed intellectual property
7. Compliance with Industry Standards: Include for regulated industries or specific compliance requirements
8. Change Control: Include when formal procedures for changes to specifications or processes are needed
9. Business Continuity: Include when supply chain continuity is critical
10. Environmental Compliance: Include when environmental standards or sustainability requirements apply
1. Product Specifications: Detailed technical specifications of products being supplied
2. Price List: Comprehensive list of products and their prices, including any volume discounts
3. Service Levels: Specific performance metrics and service level requirements
4. Quality Control Procedures: Detailed quality control and testing procedures
5. Delivery Locations: List of approved delivery locations and specific delivery requirements
6. Key Personnel: List of key contacts and responsible personnel from both parties
7. Form of Purchase Order: Standard template for purchase orders
8. Compliance Certificates: Required regulatory or quality compliance certificates
9. Insurance Requirements: Detailed insurance coverage requirements and certificates
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Retail
Consumer Goods
Industrial Products
Food and Beverage
Electronics
Automotive
Pharmaceuticals
Chemicals
Construction Materials
Textiles
Agriculture
Mining
Energy
Telecommunications
Relevant Teams
Legal
Procurement
Supply Chain
Operations
Finance
Commercial
Risk Management
Compliance
Quality Assurance
Logistics
Business Development
Relevant Roles
Procurement Manager
Supply Chain Director
Commercial Director
Legal Counsel
Contract Manager
Operations Manager
Purchasing Officer
Supply Chain Analyst
Chief Financial Officer
Business Development Manager
Vendor Relations Manager
Quality Assurance Manager
Logistics Manager
Risk Management Officer
Compliance Officer
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