Credit Agreement For Supply Of Goods Template for Philippines

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Key Requirements PROMPT example:

Credit Agreement For Supply Of Goods

"I need a Credit Agreement for Supply of Goods for my manufacturing company in Manila, providing a PHP 5 million credit line to a distributor for regular purchase of electronic components, with monthly repayment terms and delivery requirements starting March 2025."

Document background
The Credit Agreement For Supply of Goods is essential for businesses in the Philippines engaging in regular supply relationships where credit terms are required. This document is particularly relevant when suppliers extend credit facilities to their customers for the regular purchase of goods, combining elements of both financing and supply arrangements. It must comply with Philippine regulations, particularly the Truth in Lending Act (Republic Act No. 3765) for credit disclosure requirements and the Civil Code of the Philippines for general contractual obligations. The agreement is commonly used in manufacturer-distributor relationships, wholesale arrangements, and other business-to-business supply chains where regular ordering and credit facilities are needed. It provides comprehensive coverage of credit terms, supply conditions, security arrangements, and enforcement mechanisms, while ensuring all necessary disclosures and protections required under Philippine law are included.
Suggested Sections

1. Parties: Identification of the creditor/supplier and the debtor/purchaser with complete legal names and addresses

2. Background: Context of the agreement, relationship between parties, and purpose of the credit facility for goods supply

3. Definitions: Definitions of key terms used throughout the agreement, including financial terms and supply-related concepts

4. Credit Facility: Details of the credit line, including amount, purpose, and availability period

5. Interest and Fees: Interest rate, calculation method, fees, charges and other costs as required by Truth in Lending Act

6. Supply Terms: Terms and conditions for the supply of goods, including ordering process and delivery terms

7. Payment Terms: Payment schedule, method of payment, and consequences of late payment

8. Representations and Warranties: Standard representations and warranties from both parties regarding capacity, authority, and compliance

9. Covenants: Ongoing obligations of the parties, including financial covenants and reporting requirements

10. Events of Default: Circumstances constituting default and consequences thereof

11. Remedies: Rights and remedies available to parties in case of default or breach

12. Governing Law and Jurisdiction: Philippine law as governing law and jurisdiction for disputes

13. General Provisions: Standard boilerplate provisions including notices, amendments, and assignment

Optional Sections

1. Security Arrangements: Include when the credit facility is secured by specific assets or guarantees

2. Insurance: Include when specific insurance requirements are needed for goods or credit protection

3. Quality Standards: Include when specific quality requirements or standards apply to the supplied goods

4. Minimum Purchase Commitments: Include when the agreement requires minimum purchase quantities

5. Electronic Communications: Include when parties agree to use electronic ordering or documentation systems

6. Force Majeure: Include when specific force majeure provisions are required beyond standard provisions

7. Intellectual Property: Include when supplied goods involve intellectual property rights

8. Confidentiality: Include when specific confidentiality provisions are needed beyond standard terms

Suggested Schedules

1. Schedule A - Goods Description: Detailed description of goods to be supplied under the agreement

2. Schedule B - Pricing Schedule: Pricing details for different goods, including any volume discounts

3. Schedule C - Credit Terms: Detailed breakdown of credit terms, charges, and computation as required by Truth in Lending Act

4. Schedule D - Delivery Terms: Specific delivery locations, timeframes, and requirements

5. Schedule E - Security Details: Details of any security arrangements or collateral (if applicable)

6. Schedule F - Form of Purchase Order: Standard form for placing orders under the agreement

7. Appendix 1 - Compliance Certificates: Required forms for periodic compliance certification

8. Appendix 2 - Technical Specifications: Detailed technical specifications for goods (if applicable)

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Manufacturing

Retail

Distribution

Wholesale Trade

Construction

Agriculture

Food and Beverage

Automotive

Electronics

Industrial Supplies

Consumer Goods

Pharmaceuticals

Chemicals

Textiles

Relevant Teams

Legal

Finance

Procurement

Supply Chain

Commercial Operations

Credit Control

Treasury

Sales

Risk Management

Accounts Receivable

Operations

Relevant Roles

Chief Financial Officer

Finance Director

Commercial Director

Supply Chain Manager

Procurement Manager

Credit Controller

Legal Counsel

Contract Manager

Treasury Manager

Accounts Receivable Manager

Sales Director

Business Development Manager

Risk Manager

Operations Director

Commercial Operations Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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