Manufacturing Agreement
A Manufacturing Agreement sets out the terms and conditions on which a manufacturer will produce goods for a purchaser.
(0 reviews)
Last updated January 22, 2025
Under 10 minutes
Suitable for Australia
Written by
Edwin Montoya Zorrilla
Reviewed by
Damin Murdock
Document Overview
This Manufacturing Agreement clearly defines the obligations of both the purchaser and manufacturer and the specific requirements of the goods to be manufactured, helping you avoid future disputes and miscommunications. It is drafted with terms that may be favourable towards the purchaser.
The Legal Risk Score of a Manufacturing Agreement Template
Our legal team have marked this document as medium risk considering:
- There are no obligations to manufacture and deliver until purchase orders are made.
- Intellectual property rights are heavily protected in favor of the Purchaser, potentially limiting the Manufacturer's use of the goods beyond the scope of the agreement.
- The Manufacturer has the right to refuse, cancel, or delay any shipment under certain conditions, which could lead to delays or complications in the supply chain for the Purchaser.
Users familiar with such agreements will recognize that while the document provides a structured approach to manufacturing and supply, it requires careful management of obligations and rights to avoid potential operational and financial risks.
Manufacturing Agreement Checklist
Complete your free Manufacturing Agreement with our checklist
Review of Product Specifications
Ensure that the Specifications attached as Schedule 2 accurately reflect the requirements and standards expected for the products to be manufactured.
Confirmation of Pricing and Payment Terms
Verify and agree on the details provided in Schedule 3 regarding the pricing and payment terms to ensure clarity and prevent future financial disputes.
Make Purchase Orders
Orders are the mechanism for commencing the manufacturing process.
Ongoing Monitoring and Compliance
Regularly monitor the performance of both parties in relation to their obligations under the agreement, including adherence to product quality, shipment schedules, and confidentiality provisions.
What does the Manufacturing Agreement cover?
- Identification of the products that will be manufactured and sold under the agreement;
- Standards and terms under which the manufacturer will produce the products;
- Terms and conditions under which the purchaser will acquire the products;
- Purchaser's acceptance or rejection of shipments;
- Pricing and payment terms;
- Confidentiality;
- Warranty obligations;
- Indemnification and insurance;
- The term of the agreement, termination rights, and obligations upon termination; and
- Standard provisions such as limitation of liability, force majeure, assignment, choice of law, and dispute resolution provisions.
View Sample Manufacturing Agreement
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