The Sales Cooperation Agreement is essential for businesses seeking to establish formal sales partnerships in the Philippines. This document is particularly valuable when companies want to expand their market reach through collaboration with local partners, distributors, or sales agents. The agreement, governed by Philippine law including the Civil Code and Commercial Code, typically covers crucial aspects such as territory definitions, commission structures, performance metrics, and compliance requirements. It's commonly used in situations where one party (usually the principal) owns products or services and wishes to leverage another party's sales capabilities or market presence. The document provides legal protection while ensuring clear understanding of roles, responsibilities, and commercial terms between the cooperating parties.
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1. Parties: Identifies and provides full legal details of all parties entering into the agreement
2. Background: Sets out the context and commercial rationale for the agreement
3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes interpretation rules
4. Scope of Cooperation: Defines the nature and extent of the sales cooperation between the parties
5. Appointment and Territory: Specifies the territorial scope and nature of the appointment (exclusive/non-exclusive)
6. Rights and Obligations: Details the specific rights and responsibilities of each party
7. Commercial Terms: Outlines pricing, commission structures, payment terms, and financial arrangements
8. Performance Targets: Establishes minimum performance requirements and related consequences
9. Term and Termination: Specifies duration, renewal provisions, and termination circumstances
10. Intellectual Property Rights: Addresses ownership and usage rights of trademarks, logos, and other IP
11. Confidentiality: Defines confidential information and obligations regarding its protection
12. Warranties and Representations: States the warranties and representations made by each party
13. Liability and Indemnification: Sets out liability limitations and indemnification obligations
14. General Provisions: Includes standard boilerplate clauses like notices, assignment, and amendments
15. Governing Law and Dispute Resolution: Specifies applicable law and method of resolving disputes
1. Marketing and Promotion: Include when parties have specific marketing obligations or joint promotional activities
2. Training and Support: Include when one party must provide training or technical support to the other
3. Data Protection: Include when the cooperation involves sharing or processing personal data
4. Non-Competition: Include when parties agree to restrictions on competing activities
5. Insurance: Include when specific insurance requirements are necessary
6. Compliance with Laws: Include when specific regulatory compliance needs to be addressed
7. Force Majeure: Include when parties want specific provisions for unforeseen circumstances
8. Change Control: Include for complex agreements requiring formal processes for changes
9. Audit Rights: Include when one party needs rights to audit the other's compliance or performance
1. Products and Services: Detailed list and specifications of products/services covered by the agreement
2. Commission Structure: Detailed breakdown of commission rates, tiers, and calculation methods
3. Territory Definition: Detailed description or map of the covered territory
4. Performance Metrics: Detailed KPIs, targets, and measurement methodologies
5. Technical Requirements: Technical specifications or standards that must be met
6. Approved Marketing Materials: Templates or guidelines for marketing and promotional materials
7. Contact Details: List of key contacts and escalation procedures
8. Standard Operating Procedures: Detailed operational procedures and workflows
9. Compliance Requirements: Specific regulatory or compliance requirements applicable to the cooperation
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