Document background
The Master Contract is designed for businesses seeking to establish a long-term commercial relationship under Philippine law while maintaining flexibility for future transactions. It provides a comprehensive framework that eliminates the need to negotiate standard terms repeatedly for each transaction, improving operational efficiency and reducing legal costs. This document type is particularly valuable in the Philippine business context, where it must comply with local commercial laws including the Civil Code of the Philippines, E-commerce Act, and other relevant regulations. The Master Contract typically includes provisions for ordering processes, performance standards, pricing mechanisms, and risk allocation, while allowing specific details to be agreed upon in subsequent order documents or statements of work. It is commonly used in various commercial arrangements including supply relationships, service provisions, distribution agreements, and technology partnerships.
