Side Agreements are commonly used in Philippine business practice when parties need to modify or supplement terms of an existing agreement without undertaking a complete revision of the original contract. This type of document is particularly useful when dealing with specific changes, clarifications, or additions to the main agreement that weren't contemplated or fully addressed when the original contract was executed. A Side Agreement must comply with Philippine contract law requirements, including those set forth in the Civil Code of the Philippines and related commercial legislation. It's essential that the document clearly establishes its relationship with the main agreement, specifies which terms are being modified or supplemented, and confirms which original terms remain in effect. This approach provides flexibility in contract management while maintaining legal certainty and compliance with Philippine law.
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1. Parties: Full legal names and details of the contracting parties, which should match the main agreement
2. Background: Context of the side agreement, including reference to the main agreement and reason for the side agreement
3. Definitions: Key terms used in the agreement, including reference to definitions in the main agreement where applicable
4. Relationship with Main Agreement: Clear statement of how this side agreement relates to and impacts the main agreement
5. Modifications to Main Agreement: Specific terms, conditions, or provisions being modified, added, or clarified
6. Effect on Other Provisions: Statement that all other provisions of the main agreement remain in full force and effect
7. Confidentiality: Provisions regarding the confidential nature of the side agreement if applicable
8. Governing Law: Confirmation that Philippine law governs the agreement
9. Execution: Signature blocks and execution requirements
1. Term and Termination: Include when the side agreement has a specific duration different from the main agreement
2. Additional Representations and Warranties: Include when new representations or warranties are needed specific to the subject matter of the side agreement
3. Payment Terms: Include when the side agreement involves financial modifications or new payment obligations
4. Notices: Include when different notice requirements or contact details apply for matters under the side agreement
5. Dispute Resolution: Include when dispute resolution procedures differ from the main agreement
6. Assignment: Include when special transfer or assignment provisions are needed
1. Schedule of Modifications: Detailed list of specific modifications to the main agreement, particularly useful for complex changes
2. Schedule of Revised Prices: If the side agreement involves price changes or new pricing structures
3. Schedule of Additional Terms: Any additional terms or conditions that are too detailed for the main body of the side agreement
4. Appendix - Authorized Signatories: List of authorized signatories if different from the main agreement
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