The Representation Agreement serves as a crucial legal instrument in the Philippine business environment, establishing formal representation relationships between companies and their authorized representatives. This document is essential when a business needs to appoint an agent or representative to act on its behalf within specified territories in the Philippines. The agreement, governed by Philippine law including the Civil Code and Commercial Code, carefully outlines the representative's authority, duties, and compensation, while protecting the principal's interests. It's particularly valuable for foreign companies entering the Philippine market, local businesses expanding their reach through representatives, or any situation requiring formal delegation of commercial authority. The document includes comprehensive provisions for compliance with local regulations, risk management, and clear performance metrics.
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1. Parties: Identifies and provides full details of the Principal and the Representative, including their legal names, addresses, and business registration details
2. Background: Explains the context of the agreement and the parties' intention to enter into a representation relationship
3. Definitions: Defines key terms used throughout the agreement to ensure clear interpretation
4. Appointment and Scope: Specifies the nature of appointment, whether exclusive or non-exclusive, and details the scope of representation
5. Territory: Defines the geographic area where the Representative is authorized to act
6. Duration: Specifies the term of the agreement, including start date and initial period
7. Representatives Rights and Powers: Details what the Representative is authorized to do on behalf of the Principal
8. Representatives Duties and Obligations: Lists the Representatives responsibilities, reporting requirements, and performance standards
9. Principals Obligations: Outlines the Principals commitments and support to the Representative
10. Compensation: Details the fee structure, commission rates, and payment terms
11. Intellectual Property: Addresses the use of trademarks, trade names, and other IP owned by the Principal
12. Confidentiality: Establishes obligations regarding confidential information
13. Termination: Specifies grounds for termination and the process for ending the agreement
14. Post-Termination Obligations: Outlines obligations that survive termination
15. Governing Law and Jurisdiction: Specifies that Philippine law governs and sets jurisdiction for disputes
16. General Provisions: Standard boilerplate clauses including notices, amendments, and severability
1. Non-Competition: Restricts the Representative from representing competing products/services. Include when protecting market position is crucial
2. Performance Targets: Sets specific sales or performance goals. Include when representation is sales-focused
3. Training and Support: Details training provisions and ongoing support. Include when complex products/services are involved
4. Insurance: Specifies required insurance coverage. Include when representation involves significant risks
5. Data Protection: Additional provisions for handling personal data. Include when representation involves processing personal information
6. Force Majeure: Addresses unforeseen circumstances preventing performance. Include when long-term or high-value representation
7. Anti-Corruption Compliance: Detailed anti-corruption provisions. Include when dealing with government entities or in high-risk sectors
1. Schedule 1: Products/Services: Detailed list of products or services covered by the representation agreement
2. Schedule 2: Territory Map: Detailed description or map of the authorized territory
3. Schedule 3: Commission Structure: Detailed breakdown of commission rates, calculation methods, and examples
4. Schedule 4: Performance Metrics: Specific KPIs and performance evaluation criteria
5. Schedule 5: Approved Sub-Representatives: List of pre-approved sub-representatives if applicable
6. Schedule 6: Principal's Trademarks: List of trademarks and usage guidelines
7. Appendix A: Required Reports: Templates and formats for required regular reports
8. Appendix B: Operating Procedures: Detailed procedures for day-to-day operations and interactions
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Consumer Goods
Technology
Pharmaceuticals
Industrial Equipment
Automotive
Real Estate
Financial Services
Telecommunications
Energy
Agriculture
Construction
Healthcare
Retail
Professional Services
Relevant Teams
Legal
Commercial
Sales
Business Development
Compliance
Operations
Contract Administration
Finance
Marketing
Regional Management
Relevant Roles
Chief Executive Officer
Commercial Director
Business Development Manager
Sales Director
Legal Counsel
Contracts Manager
Country Manager
Regional Director
Channel Manager
Sales Operations Manager
Compliance Officer
Business Unit Head
Marketing Director
Account Manager
Partnership Manager
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