Manufacturing Agreement
A Manufacturing Agreement sets out the terms and conditions on which a manufacturer will produce goods for a purchaser.
Last updated January 22, 2025
Suitable for Australia
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Frequently asked questions
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
The Legal Risk Score of a Manufacturing Agreement Template is Medium
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.
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