The Frame Agreement is a strategic commercial document used in the Philippines to establish a master arrangement between parties who anticipate ongoing business relationships. It provides an efficient mechanism for repeated transactions by setting out standard terms, conditions, and procedures that will apply to future specific agreements or purchase orders. This type of agreement is particularly valuable for businesses seeking to streamline their commercial operations while ensuring compliance with Philippine law, including the Civil Code, Commercial Code, and relevant regulatory requirements. The document typically includes comprehensive provisions for pricing, service levels, ordering procedures, and performance standards, while maintaining flexibility to accommodate specific requirements in subsequent transactions. Frame Agreements are especially useful in industries with recurring transactions or long-term supply relationships, providing both legal certainty and operational efficiency.
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1. Parties: Identification of the contracting parties, including full legal names, addresses, and registration details
2. Background: Context of the agreement, relationship between parties, and general purpose of the framework arrangement
3. Definitions and Interpretation: Definitions of key terms used throughout the agreement and rules of interpretation
4. Scope of Agreement: Overall scope of the framework and nature of future specific agreements to be entered into
5. Term and Duration: Initial term, renewal provisions, and conditions for extension of the framework
6. Order Process: Procedures for placing, accepting, and processing individual orders under the framework
7. Pricing and Payment Terms: General pricing principles, payment terms, invoicing procedures, and price adjustment mechanisms
8. Performance Standards: Quality standards, service levels, and performance metrics applicable to all transactions
9. Representations and Warranties: Standard representations and warranties from both parties
10. Confidentiality: Obligations regarding confidential information and trade secrets
11. Liability and Indemnification: Allocation of risks, limitation of liability, and indemnification obligations
12. Termination: Grounds for termination, termination procedures, and consequences of termination
13. General Provisions: Standard boilerplate clauses including notices, entire agreement, amendments, governing law, etc.
1. Intellectual Property Rights: Include when framework involves IP creation, licensing, or technology transfer
2. Data Protection: Required when personal data processing is involved, ensuring compliance with Data Privacy Act
3. Insurance Requirements: Include when specific insurance coverage needs to be maintained by either party
4. Competition Compliance: Add when there are potential competition law implications
5. Force Majeure: Include detailed force majeure provisions for industries sensitive to external disruptions
6. Audit Rights: Add when regular auditing of performance or compliance is necessary
7. Environmental Compliance: Include for agreements involving environmental impacts or responsibilities
8. Anti-Corruption Compliance: Add when dealing with government entities or high-risk jurisdictions
1. Schedule 1 - Pricing Schedule: Detailed pricing structure, rates, and calculation methodologies
2. Schedule 2 - Service Levels: Detailed service level requirements and performance metrics
3. Schedule 3 - Order Form Template: Standard template for placing individual orders under the framework
4. Schedule 4 - Technical Specifications: Detailed technical requirements and specifications
5. Schedule 5 - Key Personnel: List of key personnel from both parties responsible for managing the framework
6. Appendix A - Compliance Requirements: Specific regulatory and compliance requirements applicable to the framework
7. Appendix B - Required Documentation: List of documents required for orders and performance under the framework
8. Appendix C - Dispute Resolution Procedures: Detailed procedures for handling disputes under the framework
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