The Exclusivity Contract is a crucial legal instrument used in Philippine business transactions to establish and maintain exclusive commercial relationships between parties. This document is particularly relevant when businesses seek to create protected market positions, exclusive distribution arrangements, or sole supplier relationships within the Philippine jurisdiction. It must comply with the Philippine Competition Act and Civil Code requirements while protecting both parties' interests. The contract typically includes detailed provisions on exclusivity scope, territory, duration, performance metrics, and termination rights, making it essential for businesses looking to secure exclusive commercial arrangements in the Philippines. The document structure accommodates various business relationships while ensuring adherence to local legal requirements and market practices.
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1. Parties: Identifies and defines the contracting parties with their complete legal names, addresses, and registration details
2. Background: Sets out the context and commercial rationale for the exclusivity agreement
3. Definitions: Defines key terms used throughout the agreement for clarity and precision
4. Grant of Exclusivity: Clearly states the exclusive rights being granted, including scope, territory, and duration
5. Scope of Exclusivity: Details the specific products, services, or rights covered by the exclusivity arrangement
6. Term and Duration: Specifies the initial term of the agreement and any renewal provisions
7. Obligations of Grantor: Lists the obligations of the party granting the exclusive rights
8. Obligations of Grantee: Details the responsibilities and commitments of the party receiving the exclusive rights
9. Performance Requirements: Establishes minimum performance criteria or targets that must be met to maintain exclusivity
10. Territory: Defines the geographic area where the exclusivity applies
11. Non-Competition: Specifies restrictions on competing activities during the term of the agreement
12. Termination: Sets out the circumstances under which the agreement can be terminated and the process for termination
13. Consequences of Termination: Details what happens after the agreement ends, including wind-down provisions
14. Governing Law and Jurisdiction: Specifies Philippine law as governing law and determines jurisdiction for dispute resolution
1. Intellectual Property Rights: Required when the exclusivity involves licenses, trademarks, or other IP rights
2. Minimum Purchase Requirements: Include when the agreement requires minimum purchase volumes or commitments
3. Marketing and Promotion: Add when the agreement includes specific marketing obligations or restrictions
4. Change of Control: Include when parties want to address the impact of ownership changes
5. Force Majeure: Add when parties want to address unforeseeable circumstances affecting performance
6. Confidentiality: Include when sensitive information will be shared between parties
7. Insurance Requirements: Add when specific insurance coverage is required for the exclusive arrangement
8. Assignment Rights: Include when transfer of rights needs to be specifically addressed
1. Product or Service Schedule: Detailed list of products or services covered by the exclusivity agreement
2. Territory Map: Visual representation of the geographic territory covered by the exclusivity
3. Performance Metrics: Detailed performance criteria and measurement methodologies
4. Pricing Schedule: Price lists, discount structures, or commission rates if applicable
5. Marketing Guidelines: Specific requirements or restrictions for marketing and promotion
6. Contact Details: List of key contacts and authorized representatives for both parties
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