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The Broker Carrier Agreement serves as a crucial legal framework for transportation service arrangements in the Philippines, establishing the relationship between freight brokers who connect shippers with transportation services and carriers who perform the actual transportation. This document is essential when establishing new broker-carrier relationships or formalizing existing ones, ensuring compliance with Philippine transportation laws and regulations. It typically includes detailed provisions on service expectations, payment terms, insurance requirements, liability allocation, and operational procedures. The agreement must align with requirements set by the Philippine Department of Transportation (DOTr) and relevant provisions of the Civil Code of the Philippines regarding contracts and obligations. This document type is particularly important in today's growing logistics sector, where clear contractual relationships are essential for smooth business operations.

1. Parties: Identifies and provides full legal details of the broker and carrier entering into the agreement

2. Background: Explains the context of the agreement and the parties' intentions to enter into a broker-carrier relationship

3. Definitions: Defines key terms used throughout the agreement for clarity and legal certainty

4. Scope of Services: Details the transportation and logistics services to be provided by the carrier

5. Broker's Obligations: Specifies the broker's responsibilities including payment terms, load information, and communication requirements

6. Carrier's Obligations: Outlines the carrier's duties including vehicle maintenance, delivery requirements, and compliance with regulations

7. Payment Terms: Details the payment structure, rates, invoicing process, and payment timeframes

8. Insurance and Liability: Specifies required insurance coverage and allocates liability between parties

9. Safety and Compliance: Sets out safety requirements and compliance with Philippine transportation laws and regulations

10. Term and Termination: Specifies the duration of the agreement and conditions for termination

11. Confidentiality: Protects confidential information shared between parties

12. Dispute Resolution: Establishes procedures for resolving disputes under Philippine law

13. General Provisions: Includes standard legal provisions such as force majeure, amendments, and governing law