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Supply of services agreement
"I need a supply of services agreement for a 12-month contract with a commercial cleaning company, specifying weekly services, a 30-day termination notice, and liability insurance coverage of $1 million."
What is a Supply of services agreement?
A Supply of services agreement sets out the terms when one party provides professional or technical services to another in the Philippines. It covers essential details like service scope, payment terms, performance standards, and delivery timelines that both the service provider and client must follow.
These agreements help protect both parties under Philippine contract law and the Civil Code, especially in sectors like IT, consulting, and business process outsourcing. They typically include key provisions for confidentiality, intellectual property rights, warranties, and dispute resolution mechanisms specific to Philippine jurisdiction.
When should you use a Supply of services agreement?
Use a Supply of services agreement when engaging external professionals or firms to perform specific work for your organization in the Philippines. This is especially crucial for ongoing service relationships in IT outsourcing, consulting, maintenance services, or professional advisory work where clear expectations and deliverables matter.
The agreement becomes essential before starting any significant service engagement, particularly when dealing with confidential information, specialized expertise, or high-value projects. Philippine businesses often need these agreements to comply with local contract laws, protect intellectual property, and establish clear performance metrics and payment terms that prevent future disputes.
What are the different types of Supply of services agreement?
- Contract For Supply Of Services: A comprehensive agreement for general professional services, covering all basic terms and conditions required under Philippine law.
- Food Supply Contract: Specialized for food service providers, including specific health, safety, and quality control requirements under FDA regulations.
- Sand Supply Contract Agreement: Tailored for construction materials supply, incorporating specific terms for delivery, quality standards, and compliance with DPWH guidelines.
Who should typically use a Supply of services agreement?
- Service Providers: Businesses, consultants, or professionals who offer specialized services, ranging from IT companies to maintenance contractors operating in the Philippines.
- Client Organizations: Companies or entities receiving services, responsible for defining requirements and ensuring compliance with Philippine business regulations.
- Legal Teams: In-house counsel or external law firms who draft and review Supply of services agreements to protect their clients' interests.
- Project Managers: Oversee service delivery, monitor performance metrics, and ensure adherence to agreement terms.
- Finance Departments: Handle payment terms, invoicing, and financial compliance aspects outlined in the agreement.
How do you write a Supply of services agreement?
- Service Details: Define exact scope, deliverables, timelines, and quality standards for the services to be provided.
- Party Information: Gather complete business details, registration numbers, and authorized representatives of both parties.
- Payment Terms: Outline fees, payment schedule, and any performance-linked incentives or penalties.
- Compliance Requirements: Check relevant Philippine industry regulations and licensing requirements.
- Risk Management: Identify key risks and necessary protections like confidentiality, IP rights, and liability limits.
- Review Process: Our platform generates legally-sound agreements customized to Philippine law, ensuring all essential elements are included.
What should be included in a Supply of services agreement?
- Party Details: Complete legal names, addresses, and authorized signatories of service provider and client.
- Service Description: Detailed scope, specifications, and deliverables aligned with Philippine contract law.
- Payment Terms: Clear fee structure, payment schedule, and tax implications under BIR regulations.
- Duration and Termination: Contract period, renewal options, and conditions for early termination.
- Warranties: Service quality guarantees and performance standards.
- Dispute Resolution: Mediation and arbitration procedures under Philippine ADR Law.
- Confidentiality: Data protection measures compliant with Philippine privacy laws.
- Governing Law: Explicit statement of Philippine law jurisdiction.
What's the difference between a Supply of services agreement and a Supply of goods agreement?
A Supply of services agreement focuses on ongoing professional or technical services delivery, while a Supply of goods agreement deals primarily with physical product transactions. This distinction is crucial under Philippine commercial law, as each type has different legal requirements and protections.
- Nature of Exchange: Services agreements cover intangible deliverables like consulting, maintenance, or professional expertise, while goods agreements involve tangible items with specific quality and quantity requirements.
- Performance Metrics: Service agreements typically include KPIs and service levels, whereas goods agreements focus on product specifications and delivery schedules.
- Legal Framework: Service agreements fall under Philippine contract law with emphasis on professional standards, while goods agreements are governed by sales law and consumer protection regulations.
- Warranty Provisions: Service agreements warrant expertise and performance quality, while goods agreements focus on product quality, defects, and merchantability.
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