Distributor Appointment Agreement Template for Philippines

The Distributor Appointment Agreement is a crucial commercial contract used when a supplier or manufacturer wishes to appoint a distributor to sell and distribute their products in the Philippines. This document is essential for businesses expanding their distribution networks while ensuring compliance with Philippine laws, including the Civil Code, Competition Act, and Consumer Protection laws. It typically includes detailed provisions on territorial rights, performance targets, product handling requirements, and intellectual property protection. The agreement is particularly important in the Philippine market due to its unique regulatory environment and the need to clearly define the rights and obligations of both parties in the distribution relationship. It serves as the primary framework for managing the ongoing commercial relationship between suppliers and distributors, including critical aspects such as pricing, payment terms, minimum purchase requirements, and termination provisions.

1. Parties: Identification of the supplier/manufacturer and distributor, including complete legal names, registration details, and addresses

2. Background: Context of the agreement, brief description of both parties' businesses, and purpose of the distribution arrangement

3. Definitions: Detailed definitions of key terms used throughout the agreement

4. Appointment and Territory: Scope of distributor appointment, territorial rights, and exclusivity/non-exclusivity provisions

5. Term and Renewal: Duration of the agreement, conditions for renewal, and notice periods

6. Distributor's Rights and Obligations: Comprehensive list of distributor responsibilities, sales targets, marketing requirements, and service standards

7. Supplier's Rights and Obligations: Supplier's commitments regarding product supply, support, training, and marketing assistance

8. Product Orders and Delivery: Ordering procedures, minimum purchase requirements, delivery terms, and logistics arrangements

9. Prices and Payment Terms: Pricing structure, payment conditions, currency, and price adjustment mechanisms

10. Intellectual Property Rights: Usage rights for trademarks, brands, and other IP, including restrictions and protection measures

11. Confidentiality: Protection of confidential information and trade secrets

12. Non-Competition and Non-Solicitation: Restrictions on competing activities and employee solicitation

13. Termination: Grounds for termination, procedures, and consequences

14. Post-Termination Obligations: Obligations and rights of both parties after agreement termination

15. Governing Law and Dispute Resolution: Choice of Philippine law and dispute resolution mechanisms

16. General Provisions: Standard boilerplate clauses including force majeure, notices, and amendments