The Sourcing Agent Agreement is essential for companies seeking to establish a formal relationship with local agents in the Philippines for procurement and supplier management purposes. This document is particularly relevant in today's global supply chain environment, where companies increasingly rely on local expertise to source products and materials efficiently. The agreement, governed by Philippine law including the Civil Code and Commercial Code, typically covers critical aspects such as agent authorization, service scope, commission structures, and compliance requirements. It's commonly used when a company needs on-ground representation in the Philippines for supplier identification, negotiation, quality control, and ongoing supplier relationship management, especially in scenarios where local market knowledge and presence are crucial for successful procurement operations.
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1. Parties: Identifies and provides details of the Principal and the Sourcing Agent
2. Background: Explains the context of the agreement and the parties' intentions
3. Definitions: Defines key terms used throughout the agreement
4. Appointment and Scope of Services: Details the appointment of the agent and specific services to be provided
5. Term and Termination: Specifies the duration of the agreement and conditions for termination
6. Agent's Obligations: Lists the specific duties and responsibilities of the sourcing agent
7. Principal's Obligations: Outlines the responsibilities and commitments of the principal
8. Compensation and Payment Terms: Details the fee structure, commission rates, and payment procedures
9. Confidentiality: Specifies obligations regarding confidential information
10. Intellectual Property: Addresses ownership and use of intellectual property
11. Representations and Warranties: States the parties' assurances and guarantees
12. Limitation of Liability: Sets boundaries for liability and indemnification
13. General Provisions: Includes standard legal clauses such as notices, amendments, and governing law
1. Exclusivity: Used when the agent is granted exclusive rights in specific territories or product categories
2. Performance Targets: Included when specific performance metrics or KPIs are required
3. Sub-agents: Required when the agent is permitted to appoint sub-agents
4. Insurance: Included when specific insurance requirements are necessary
5. Foreign Exchange Provisions: Used for international transactions requiring specific currency arrangements
6. Compliance with Trade Laws: Detailed section when dealing with regulated products or markets
7. Force Majeure: Optional detailed provisions for unforeseen circumstances
8. Data Protection: Detailed provisions when handling personal or sensitive data
1. Schedule 1 - Services Description: Detailed description of sourcing services to be provided
2. Schedule 2 - Commission Structure: Detailed breakdown of commission rates and calculation methods
3. Schedule 3 - Territory: Definition of geographical areas covered by the agreement
4. Schedule 4 - Product Specifications: Detailed specifications of products to be sourced
5. Schedule 5 - Approved Suppliers: List of pre-approved suppliers if applicable
6. Schedule 6 - Quality Standards: Specific quality requirements and standards
7. Appendix A - Reporting Templates: Standard formats for regular reporting
8. Appendix B - Operating Procedures: Detailed procedures for day-to-day operations
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Retail
Import/Export
Textiles and Apparel
Electronics
Consumer Goods
Industrial Equipment
Food and Beverage
Raw Materials
Automotive Parts
Furniture and Home Goods
Relevant Teams
Procurement
Legal
Supply Chain
Operations
Commercial
Compliance
International Trade
Vendor Management
Contract Administration
Risk Management
Relevant Roles
Procurement Manager
Supply Chain Director
Sourcing Specialist
Legal Counsel
Commercial Director
Operations Manager
Purchasing Manager
Vendor Relations Manager
International Trade Manager
Compliance Officer
Contract Administrator
Chief Procurement Officer
Supply Chain Manager
Business Development Manager
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