University of San Jose Recoletos

Magallanes Street, Cebu City

College of Commerce

Department of Accountancy

In partial fulfillment of the Course,

Law 1: The Law on Obligations and Contracts

OUTPUT FOR THE PRELIMS:

DRAFTING OF CONTRACTS

CONTRACT OF AGENCY

Presented to:

Atty. Chevrolie E. Maglasang - Isoto

Presented by:

Berame, Frezzie Elaiza P.

Maranga, Cora Jane B.

CONTRACT OF AGENCY
This Agreement is made between ASIATIC DEVELOPMENT CORPORATION/BASIC
HOUSING SOLUTIONS, INCORPORATED with office address at Asiatic Building,
Phoenix Sun Business Park, E. Rodriguez, Jr. Avenue, Cebu City, Philippines
represented in this act by its president, MS. FREZZIE ELAIZA BERAME (hereinafter
called the Principal) entered into this day of July 14, 2016 and CORA JANE B.
MARANGA (hereinafter called the Associate).

RECITALS

1. Whereas, the Principal is engaged in real estate development, construction and

marketing of real property in the Philippines and abroad.

2. Whereas, the Associate agrees to market and sell the real estate projects being
developed by the Principal during the term of this Agreement.

3. Whereas, the Associate is hereby made and constituted as Affiliate, Agent, Broker,
Consultant, Director, Manager, Officer, Vice President and other title classification
the Principal may decide to use to enable the former to perform duty and transact
business with the Principal.

4. Whereas, the Associate, being an independent contractor, has no employee-

employer relationship with the Principal and has no right or authority to perform,
assume or create obligation of any kind for and in behalf of the Principal other than
what is stipulated in this Agreement.

AGREEMENT

Obligations of the Principal

1. In its relation with the Agent, the Principal must act dutifully and in good faith.

2. As the Principals agent, the Associate will purchase materials, supplies, equipment,
and other items utilizing the specified purchase order forms. For items so purchased,
vendors will render statements and invoices to the Associate as the Principals
agent. The Associate will review and approve the invoices, as appropriate, and
forward the invoices to Principal for payment. By approving and forwarding such
invoices to the Principal for payment, the Associate certifies the validity and
accuracy of the invoices and that, to the best of his knowledge, the items covered by
the invoices are of the quality and quantity specified in the Contract.

3. The Contract provides that the Associate will perform the work under the Contract for
the Contract sum of Php 100,000 , which includes the costs of all materials,
supplies, equipment, and other items to be purchased hereunder, plus sales and use
taxes thereon. Payments made by Principal to vendors pursuant to this Agency
Agreement shall also constitute payments against the Contract sum of Php 100,000.
However, said amount due Associate under the Contract shall be reduced by the
sum of any savings of sales and use tax and 50 percent of any cash discounts
earned on the purchases made hereunder. In the event that Associate pays for
materials, supplies, equipment, or other items that should have been purchased
and/or paid for by the Principal under this Agency Agreement, the Principal may, at
 its discretion, also reduce the said amount due as Contract sum by the amount of
sales tax that was due and or paid.

4. The Principal shall appropriately compensate the Associate for its services rendered
by means of commission corresponding to the Appointment Memorandum, which will
be issued by the Principal and shall form part of this Agreement.

5. The Principal is liable to refund any expenses incurred solely and exclusively in the
business by the Agent provided with any evidences on such expenses.

6. As mentioned in paragraph 5, if no evidence can be shown, the notion of refunding

is neglected.

7. The Principal hereby grants to the Agent the right to use the trademarks, trade
names or intellectual property in relation to the product(s) (or service(s)) for the
purpose of exercising its rights and performing its obligations under this contract.

8. The Principal shall supply the Agent, free of charge, with any advertisement content
and materials in relation with the product(s) (or service(s)) needed for the
performance of this contract.

9. The Principal shall furthermore keep the Agent informed of any relevant
communication with or for the attention of the customers in the territory.

Obligations of the Associate

1. The Associate shall practice the highest ethical standard of the profession with
utmost discipline, transparency and respect to rules, regulations and policies of
Asiatic Group of Companies.

2. The authority granted to Associate hereunder may be revoked by Principal at any

time upon written notice delivered to Associate at his offices located at during normal
business hours.

3. The Associate is always duty bound to engage in all conducts that are in the best
interest of the Principal; to support and participate wholeheartedly in all related
activities.

4. Any costs of administration to be incurred by Associate in conjunction with this

Agency Agreement are included in the Contract sum cited in paragraph 3 above.

5. The Associate shall maintain separate accounting records of all transactions carried
out under this Agency Agreement. Such records shall be open to Owner during
normal business hours of Contractor for a period of two (2) years after completion of
the project.

6. The Agent undertakes not to compete with the Principal or to enter into any business
relationship with competitors of the Principal for the entire duration of the present
contract.

7. The Agent is not authorized to advertise or promote the sale of the products or its
activity as Agent of the Principal on Internet without the Principals prior written
approval.

8. In any event, the Associate shall ensure that the advertising campaign as well as the
advertisement content and materials strictly comply with local rules and regulations.
 Obligations of the Principal and Associate

1. In case of falsification of documents, misappropriation, defalcation of money, loss or

damage to property due to negligence, misuse or abuse of authority in violation of this
Contract of Agency, this Contract of Agency is hereby terminated and the Associate
waives all rights and authorizes the Principal to forfeit any and all remuneration and/or
commissions due him/her without prejudice to any other right or legal action of the
Principal under existing laws.

2. In case of misrepresentation to the client and neglect or failure of the Associate to

complete the execution of assigned duty or to assist the Client and Principal in the
consummation of transaction, the Principal has the authority to make penalty or forfeit
any or all remuneration or commission due to the Associate.

3. In case of voluntary termination of contract or indefinite leave of absence, the Associate

shall submit a 30 days notice to the Principal for the proper turnover of duties and
responsibilities.

4. If, at the end of the year 2016, the minimum number/volume of orders applicable to
such year is not met by the Agent, the Principal shall be entitled, subject to giving a one
months notice and not later than two months after the end of that year at his choice:

4.1 To terminate the present contract, under Article 14;

4.2 To cancel the Agents exclusivity (whenever applicable); or
4.3 To reduce the extension of the territory, by excluding the territories where the Agent
has made less promotion.

5. The Principal and the Agent should adhere to the stipulations of the contract otherwise,
the contract is subject to immediate termination.

PRINCIPAL ASSOCIATE
FREZZIE ELAIZA P. BERAME CORA JANE B. MARANGA
CTC No.: 22388881 CTC No.: 02426539
Issued on: May 5, 2016 Issued on: May 5, 2016
Issued at :San Fernando, Cebu Issued at :Mabolo,Cebu City

ACKNOWLEDGEMENT
REPUBLIC OF THE PHILIPPINES)
Province/City of Cebu)

BEFORE ME, personally appeared the following:

Catherine Oponi and James Vincent Generale

Known to me and to me known to be the same persons who executed the foregoing
instrument and acknowledged that they executed the same as their own free and
voluntary act and deed and/or that of the entity herein represented.

This instrument consisting of_six__ (6) pages, including this page wherein the
Acknowledgement is written, has been signed by the parties and their instrumental
witnesses on each and every page hereof and relates to a Memorandum of Agreement.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal this
14thday of July in Cebu City.

Notary Public

Doc No ____30____
Page No ___71____
Book No___29____
Series of __2016__
 CCI2014
201 San Fernando, 5 05 22388881
6Berame Cebu 16
Frezzie P.
Mabolo, Cebu City Elaiza

Filipino San Fernando,

Cebu 11 27
97

30

35

35

Thirty Five Pesos

Only

Frezzie Elaiza P.
Berame
11 10617892
-23
 CCI2014
201 Mabolo, Cebu City 5 05 02426539
6Marang 16
Cora B.
a Mabolo, Cebu City Jane

Filipino Mabolo, Cebu

City 10 18
97

30

35

35

Thirty Five Pesos

Only

Cora Jane B.
Maranga
11 78611872
-88