Catering Contract Template for Philippine Caterers

The Civil Code lets you write your own terms, within limits

Article 1306 of the Civil Code allows contracting parties to agree any terms they consider convenient, as long as they are not contrary to law, morals, good customs, public order or public policy. That gives caterers wide room to set guest guarantees, payment schedules and cancellation charges.

The limits show up in the remedies. Article 1226 says that where a contract has a penal clause, the penalty takes the place of damages unless the contract says otherwise. Article 1229 lets a judge reduce the penalty if the obligation was partly performed, or if it is iniquitous or unconscionable. A clause that keeps the full package price when a client cancels eleven months ahead is the kind a court may cut down.

Guest guarantees and extra plates

State the guaranteed number of guests, the date by which the final count is due, and the per-head rate for extra guests. Say what happens if fewer guests arrive: most caterers bill the guaranteed number. Say what happens if more arrive: how many extra plates the kitchen prepares as a buffer, who can approve extras on the day, and at what rate.

Filipino celebrations reliably attract uninvited relatives. A clause that says "extra guests beyond the guaranteed 150 will be served while food lasts and billed at ₱750 each, up to 20 guests" is far better than a shouting match at the buffet.

Sample: Schedule 1 of an outside catering contract

Garden wedding for 300 guests at a private venue in Batangas, catered off-site by a VAT-registered caterer, prices exclusive of VAT.

• Guaranteed 280 guests; up to 20 extra guests served at ₱750 each while food lasts.
• Signal No. 2 or higher over Batangas on the day: event moves to a date within 6 months with all payments carried over.
• Sanitary permit and crew health certificates attached as Annex A.

What your catering contract must show in Philippines

Reservation fee, installments and cancellation charges

Set the reservation fee, the installment dates and the final payment date. Then write a graduated cancellation schedule: for example, 20% of the package if cancelled more than six months before, 50% within three months, and 100% within 14 days. Link each figure to costs you actually incur, such as turned-away bookings, food ordered and staff engaged, which helps if Article 1229 is ever argued.

Separate cancellation from postponement. Many couples postpone rather than cancel. Say whether the reservation fee transfers to a new date, how many times, and whether a new date in peak season costs more.

Typhoons, lockdowns and other fortuitous events

Article 1174 of the Civil Code says that, unless the law or the contract provides otherwise or the obligation by its nature assumes the risk, no one is responsible for events that could not be foreseen or that, though foreseen, were inevitable. For a caterer in typhoon season, that default is too vague to run a business on.

Write a clause that names the triggers, such as a PAGASA tropical cyclone wind signal over the venue area, a government order closing venues, or a declared state of calamity. Then set the result: move to a covered hall, postpone to a date within a set period with the reservation fee carried over, or refund a stated portion after deducting costs already incurred. The clause replaces the default rule, which is exactly what Article 1174 allows.

VAT, service charge, permits and staff

State whether the price includes 12% VAT, or that you are not VAT-registered. The invoice you issue must follow the amended Tax Code, and the contract should promise an invoice, not an official receipt, for each payment.

If you charge a service charge, say so and say how it is distributed. RA 11360 requires hotels, restaurants and similar establishments to distribute collected service charges completely and equally among covered staff.

Promise what the Code on Sanitation requires anyway: a current sanitary permit and health certificates for all food crew. Venues and corporate clients often ask for copies, so attach them to the contract.

Clauses to include in a Philippine catering contract

Use numbered clauses so both sides can refer to them quickly in messages.

• Parties, with registered names, addresses and TINs
• Event date, venue, service hours and set-up access
• Menu, tasting and changes deadline
• Guaranteed guests, final count date and extra-guest rate
• Price, VAT status, reservation fee and installments
• Cancellation and postponement schedule
• Fortuitous events clause with named triggers
• Venue rules, corkage and outside food
• Breakage, damage and leftover food policy
• Permits, health certificates and service charge
• Signatures and date

Off-site catering: venue rules, leftovers and damage

When you cater at a garden venue, a private home or a resort, the venue's own rules apply as well as your contract. Get them in writing and attach them: ingress and egress times, where the kitchen tent may stand, generator placement and noise limits, and the venue's corkage or accreditation fee for outside caterers. If the client booked the venue, say in your contract that they are responsible for the venue fee and for obtaining any barangay or venue permits the event needs.

Say what happens to leftover food. Some families expect to take it home; some caterers refuse for food safety reasons once it has been out for several hours. Either position is reasonable, but it has to be written down before the day.

Finally, cover breakage and damage in both directions. Your crew may break the venue's glassware, and guests may damage your chafing dishes or tables. A simple schedule of replacement values attached to the contract saves an argument when the tent comes down at midnight, and a photo walk-through of the venue before set-up protects you from being blamed for damage that was already there.

Catering contract questions from Philippines