The Service Agreement Between Two Companies is a fundamental commercial contract used in the Philippine business environment when one company wishes to engage another for the provision of specific services. This document is essential for establishing clear terms of engagement, defining service scope, setting performance metrics, and protecting both parties' interests under Philippine law. It incorporates key elements required by the Civil Code of the Philippines and other relevant legislation, making it suitable for various business arrangements from IT services to consulting engagements. The agreement typically includes comprehensive details about service delivery, payment structures, and compliance requirements, while also addressing specific Philippine regulatory considerations such as tax implications and corporate authorizations.
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1. Parties: Identification of the service provider and service recipient, including full legal names, registration numbers, and registered addresses
2. Background: Context of the agreement and brief description of the parties' business relationship
3. Definitions: Definitions of key terms used throughout the agreement
4. Scope of Services: Detailed description of services to be provided
5. Term and Termination: Duration of the agreement and conditions for termination
6. Fees and Payment Terms: Pricing, payment schedule, invoicing procedures, and payment methods
7. Service Provider's Obligations: Key responsibilities and commitments of the service provider
8. Service Recipient's Obligations: Key responsibilities and commitments of the service recipient
9. Service Levels: Performance standards and metrics for service delivery
10. Intellectual Property Rights: Ownership and usage rights of IP created or used during service provision
11. Confidentiality: Protection and handling of confidential information
12. Liability and Indemnification: Allocation of risks and responsibilities for damages
13. Force Majeure: Provisions for unforeseen circumstances preventing performance
14. Dispute Resolution: Procedures for resolving disagreements, including jurisdiction choice
15. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment
16. Execution: Signature blocks and execution requirements
1. Data Protection: Required when services involve processing personal data or sensitive information
2. Compliance with Laws: Detailed section needed when services are in regulated industries
3. Insurance: Required when services involve significant risks or physical presence
4. Non-Competition: Used when there's a need to restrict competitive activities
5. Personnel Requirements: Needed when specific qualifications or security clearances are required
6. Transition Services: Required when complex handover procedures are necessary at termination
7. Business Continuity: Important for critical services requiring disaster recovery planning
8. Change Control: Needed for services likely to require modifications over time
9. Audit Rights: Important when compliance verification or performance monitoring is required
1. Schedule A - Service Description: Detailed specifications of services to be provided
2. Schedule B - Service Levels: Detailed performance metrics, KPIs, and measurement methods
3. Schedule C - Fee Schedule: Detailed pricing, rate cards, and payment terms
4. Schedule D - Key Personnel: List of key team members and their roles
5. Schedule E - Technical Requirements: Technical specifications and requirements for service delivery
6. Appendix 1 - Contact Details: Contact information for key representatives from both parties
7. Appendix 2 - Required Reports: Templates and specifications for required service reports
8. Appendix 3 - Security Requirements: Security protocols and compliance requirements
Relevant legal definitions
Clauses
Relevant Industries
Information Technology
Business Process Outsourcing
Professional Services
Consulting
Manufacturing
Healthcare
Financial Services
Telecommunications
Logistics and Supply Chain
Facilities Management
Marketing and Advertising
Engineering Services
Relevant Teams
Legal
Procurement
Operations
Finance
Compliance
Risk Management
Business Development
Project Management
Account Management
Commercial Operations
Relevant Roles
Chief Executive Officer
Chief Operating Officer
Chief Financial Officer
Legal Counsel
Procurement Manager
Contract Manager
Operations Director
Commercial Director
Business Development Manager
Project Manager
Account Manager
Compliance Officer
Risk Manager
Finance Director
Department Head
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