The Business Service Agreement serves as a fundamental legal instrument for companies operating in the Philippines that engage in service-based business relationships. This document is essential when one company provides professional, technical, or operational services to another entity, requiring clear definition of service scope, deliverables, and performance standards. It incorporates crucial elements of Philippine business law, including provisions from the Civil Code, Corporation Code, and relevant regulatory requirements such as the Data Privacy Act and E-commerce regulations. The agreement is particularly important in the Philippine business context, where business process outsourcing and professional services are major economic drivers. It provides a structured framework for service delivery, risk allocation, and relationship management while ensuring compliance with local legal requirements and business practices.
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1. Parties: Identification of the service provider and client, including full legal names, registration details, and 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, including deliverables and performance standards
5. Term and Termination: Duration of the agreement, renewal terms, and circumstances for termination
6. Fees and Payment: Payment terms, fee structure, invoicing procedures, and payment timeline
7. Service Provider Obligations: Key responsibilities and commitments of the service provider
8. Client Obligations: Key responsibilities and commitments of the client
9. Confidentiality: Provisions for protecting confidential information of both parties
10. Data Privacy and Protection: Compliance with Philippine Data Privacy Act and data handling procedures
11. Intellectual Property Rights: Ownership and usage rights of pre-existing and created IP
12. Warranties and Representations: Guarantees and assertions made by both parties
13. Limitation of Liability: Caps on liability and exclusions of certain types of damages
14. Force Majeure: Provisions for handling events beyond parties' reasonable control
15. Dispute Resolution: Process for resolving disputes, including jurisdiction and governing law
16. General Provisions: Standard boilerplate clauses including notices, amendments, and severability
17. Execution: Signature blocks and execution formalities
1. Service Levels: Detailed service level agreements (SLAs) and performance metrics - include when specific performance standards are crucial
2. Compliance with Laws: Specific regulatory compliance requirements - include for heavily regulated industries
3. Insurance: Insurance requirements and coverage details - include for high-risk services
4. Security Requirements: Specific security protocols and requirements - include when handling sensitive data or systems
5. Subcontracting: Terms governing use of subcontractors - include when subcontracting is anticipated
6. Change Control: Process for managing changes to services - include for complex or long-term agreements
7. Business Continuity: Disaster recovery and business continuity requirements - include for critical services
8. Personnel Requirements: Specific staffing requirements or qualifications - include when specific expertise is required
9. Transition Services: Terms for service transition at start and end of agreement - include for complex service arrangements
1. Schedule A - Service Description: Detailed description of services, methodologies, and deliverables
2. Schedule B - Fee Schedule: Detailed pricing, payment terms, and rate cards
3. Schedule C - Service Levels: Detailed performance metrics, measurement methods, and remedies
4. Schedule D - Key Personnel: List of key personnel and their roles/responsibilities
5. Schedule E - Technical Requirements: Technical specifications and requirements
6. Schedule F - Data Processing Agreement: Detailed data handling and privacy requirements per Philippine Data Privacy Act
7. Schedule G - Business Continuity Plan: Disaster recovery and business continuity procedures
8. Appendix 1 - Contact Details: Key contact information for both parties
9. Appendix 2 - Approved Subcontractors: List of pre-approved subcontractors if applicable
Relevant legal definitions
Clauses
Relevant Industries
Information Technology
Business Process Outsourcing
Professional Services
Financial Services
Healthcare
Manufacturing
Retail
Telecommunications
Education
Real Estate
Logistics
Consulting
Digital Services
Corporate Services
Relevant Teams
Legal
Procurement
Operations
Commercial
Risk and Compliance
Finance
Business Development
Contract Management
Project Management
Service Delivery
Account Management
Vendor Management
Relevant Roles
Chief Executive Officer
Chief Operating Officer
Legal Counsel
Procurement Manager
Contract Manager
Business Development Manager
Operations Director
Project Manager
Compliance Officer
Risk Manager
Commercial Director
Service Delivery Manager
Account Manager
Chief Financial Officer
Vendor Relations Manager
General Counsel
Head of Operations
Business Unit Head
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