Commercial Management Agreement

Commercial Management Agreement Template for Philippines

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Key Requirements PROMPT example:

"I need a Commercial Management Agreement for my retail chain in Manila, where a foreign management company will handle operations of 5 shopping centers starting March 2025, with specific provisions for local staff retention and performance-based fees."

Document background

The Commercial Management Agreement is a crucial document used when a business owner seeks to delegate operational control and management responsibilities to a professional management service provider in the Philippines. This agreement is particularly relevant for businesses looking to benefit from professional management expertise while maintaining ownership rights. It must comply with Philippine legislation, including the Corporation Code, Civil Code, and foreign investment regulations. The document typically includes comprehensive provisions covering management scope, operational control, performance metrics, financial arrangements, and reporting requirements. It's especially important in cases involving foreign management companies, requiring careful consideration of the Anti-Dummy Law and Foreign Investments Act. The agreement serves as the primary framework for establishing clear lines of authority, responsibilities, and commercial terms between the parties.

Suggested Sections

1. Parties: Identification of the parties entering into the agreement, including full legal names and addresses

2. Background: Context of the agreement, including brief description of the business and purpose of the management arrangement

3. Definitions and Interpretation: Definitions of key terms used throughout the agreement and rules of interpretation

4. Appointment and Scope: Formal appointment of the manager and detailed scope of management services

5. Term and Renewal: Duration of the agreement and conditions for renewal

6. Manager's Rights and Obligations: Detailed responsibilities, authority levels, and duties of the manager

7. Client's Rights and Obligations: Responsibilities and obligations of the client, including provision of information and resources

8. Performance Standards: Required service levels and performance metrics

9. Fees and Payment Terms: Management fees, payment schedule, expenses, and invoicing procedures

10. Reporting and Communication: Required reports, meetings, and communication protocols

11. Confidentiality: Protection of confidential information and trade secrets

12. Intellectual Property: Ownership and usage rights of intellectual property

13. Liability and Indemnification: Limitations of liability and mutual indemnification provisions

14. Termination: Grounds for termination, notice requirements, and consequences

15. Post-Termination Obligations: Obligations of parties after termination, including handover processes

16. General Provisions: Standard legal provisions including notices, amendments, governing law, etc.

Optional Sections

1. Insurance: Specific insurance requirements - include when significant operational risks exist

2. Force Majeure: Provisions for unforeseen circumstances - important in high-risk environments

3. Non-Competition: Restrictions on competitive activities - include when protecting market position

4. Anti-Corruption: Compliance with anti-corruption laws - essential for international arrangements

5. Data Protection: Specific data handling requirements - include when personal data is processed

6. Environmental Compliance: Environmental obligations - include for industries with environmental impact

7. Employee Matters: Specific provisions regarding staff management - include when staff transfer is involved

8. Dispute Resolution: Detailed dispute resolution procedures - include for complex arrangements

Suggested Schedules

1. Schedule 1 - Scope of Services: Detailed breakdown of management services to be provided

2. Schedule 2 - Fee Structure: Detailed calculation of management fees, incentives, and expenses

3. Schedule 3 - Key Performance Indicators: Specific performance metrics and measurement methods

4. Schedule 4 - Reporting Requirements: Templates and specifications for required reports

5. Schedule 5 - Key Personnel: List of key management personnel and their roles

6. Schedule 6 - Operating Procedures: Detailed operational procedures and protocols

7. Schedule 7 - Client Assets: Inventory of assets under management

8. Appendix A - Power of Attorney: Format of power of attorney if required for specific actions

9. Appendix B - Compliance Requirements: Specific regulatory and compliance requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ ��Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co

Relevant legal definitions

Clauses

Relevant Industries

Hospitality and Tourism

Retail

Real Estate and Property Management

Manufacturing

Healthcare

Business Process Outsourcing

Construction

Restaurant and Food Service

Shopping Centers and Malls

Industrial Parks

Logistics and Supply Chain

Agricultural Business

Energy and Utilities

Relevant Teams

Legal

Operations

Commercial

Finance

Compliance

Risk Management

Business Development

Human Resources

Procurement

Asset Management

Facilities Management

Corporate Affairs

Relevant Roles

Chief Executive Officer

Managing Director

Operations Director

General Manager

Commercial Director

Legal Counsel

Contract Manager

Business Development Manager

Finance Director

Property Manager

Facility Manager

Regional Manager

Country Manager

Compliance Officer

Risk Manager

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Let's create your Commercial Management Agreement

Authors

Alex Denne

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