Document background
The Future Purchase Agreement is utilized when parties wish to establish a long-term commercial relationship for the regular purchase of goods or services in the Philippines. This document is particularly valuable when businesses need to secure future supply arrangements while maintaining flexibility in specific order quantities. It typically includes provisions for pricing mechanisms, minimum purchase commitments, delivery schedules, and quality standards, all structured to comply with Philippine commercial law. The agreement serves as a master document that governs subsequent purchase orders, reducing the need for repeated contract negotiations while providing certainty and protection for both buyers and sellers in their ongoing business relationship.
