Manufacturing Agreement

It is an agreement signed between the product innovators and the manufacturers. These are usually a short term agreement (generally for a year). If the goods are well received in the market if the profit target is achieved and still the innovators feel that there is a need for manufacturing the product, then they may renew the agreement further. It gets terminated when the terms stipulated are completed. The agreement is made in such a manner that the liability almost vests on the manufacturers till the product/goods get delivered accordingly.

Like the other commercial agreements this agreement also contains certain general clauses, which include.

  • Definition – defines the terms in context of this agreement
  • Term of the agreement
  • Liability clause – which talks about the liability of the  parties
  • Jurisdiction clause – includes the jurisdiction of the laws in case of any disputes.

In inventor’s point of view one must be cautious in mentioning the product specifications to the manufacturer. Further more you shall ask for a sample product manufactured adhering the specifications illustrated. This may resolve future disputes.

Manufacturer shall make clear provisions regarding the mode of delivery of the goods, method of packaging. Generally the dispute may be of the said nature:

  • Products manufactured but not delivered on time/specified address/specified packaging mode.
  • Product does not meet the specifications agreed upon or such kind.

Essentials: Like other commercial agreement this agreement also requires witnesses. Confidentiality of transaction of information must be maintained throughout. This may be mentioned as a clause in the agreement. Further, clause of serviceability can be included. This clause is useful if there is any part of the agreement that is not in compatible with law time being in force can be altered with similar corrections made to the agreement. If you wish to get a Manufacturing Agreement Sample, just call our attorney