The Pre Partnership Agreement is a crucial preliminary document used when two or more parties are considering entering into a business partnership in the Philippines but need to establish ground rules for their negotiations and due diligence process. This document is particularly important in the Philippine business context, where relationships and trust-building are essential components of business dealings. It serves as a protective mechanism for all parties during the exploratory phase, ensuring confidential information is protected and setting clear expectations for the negotiation process. The agreement typically precedes a full Partnership Agreement or Joint Venture Agreement and is especially relevant given the Philippines' increasing focus on international business partnerships and foreign investment. It must comply with the Civil Code of the Philippines and related commercial regulations while addressing practical concerns such as cost-sharing, exclusivity, and the framework for negotiations.
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1. Parties: Identification and details of all potential partners, including full legal names, addresses, and contact information
2. Background: Context of the proposed partnership, including the business opportunity and reasons for exploring the partnership
3. Definitions: Key terms used throughout the agreement defined for clarity and consistency
4. Purpose and Scope: Outline of the intended purpose of the pre-partnership arrangement and scope of activities during this phase
5. Duration: Timeline for the pre-partnership period and conditions for extension or early termination
6. Confidentiality: Provisions protecting confidential information exchanged during the pre-partnership phase
7. Due Diligence: Framework for conducting mutual due diligence investigations
8. Costs and Expenses: Allocation of costs incurred during the pre-partnership phase
9. Exclusivity: Terms preventing parties from entering into similar discussions with other potential partners
10. Good Faith Negotiations: Commitment to negotiate the final partnership agreement in good faith
11. Governing Law and Jurisdiction: Specification of Philippine law as governing law and choice of courts
12. Signatures: Execution block for all parties
1. Non-Competition: Used when parties want to restrict competitive activities during the pre-partnership phase
2. Intellectual Property Rights: Include when parties will be sharing or developing IP during the pre-partnership phase
3. Break Fee: Include when parties want to specify compensation if one party withdraws from negotiations
4. Regulatory Compliance: Required when the proposed partnership involves regulated industries or activities
5. Force Majeure: Include when parties want to address potential extraordinary circumstances affecting the pre-partnership process
6. Assignment: Include when there's a possibility of rights transfer during the pre-partnership phase
7. Public Announcements: Include for high-profile partnerships or when public disclosure needs to be controlled
1. Schedule 1 - Initial Business Plan: Preliminary outline of the proposed partnership business
2. Schedule 2 - Due Diligence Requirements: List of documents and information required from each party
3. Schedule 3 - Timeline: Proposed timeline for pre-partnership activities and milestones
4. Schedule 4 - Confidential Information: Specific list of information deemed confidential
5. Schedule 5 - Cost Allocation: Detailed breakdown of how costs will be shared during the pre-partnership phase
Relevant legal definitions
Clauses
Relevant Industries
Technology and Software
Manufacturing
Retail and E-commerce
Professional Services
Real Estate and Construction
Healthcare and Medical Services
Agriculture and Food Production
Financial Services
Education and Training
Tourism and Hospitality
Energy and Utilities
Transportation and Logistics
Relevant Teams
Legal
Business Development
Corporate Development
Finance
Strategy
Operations
Risk and Compliance
Executive Leadership
Commercial
International Business
Relevant Roles
Chief Executive Officer
Managing Director
Business Development Manager
Corporate Lawyer
Legal Counsel
Chief Financial Officer
Partnership Manager
Strategic Alliance Director
Investment Manager
Corporate Development Officer
Commercial Director
Operations Manager
Risk Manager
Compliance Officer
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