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Manufacturing agreement: customer version

This manufacturing agreement is for use by any business, to order manufacture of any product. Use for engineered product, clothes, furniture or anything else. The key point is that you are not instructing the manufacturer to finalise design work or add value but simply to make the product for you. It is an umbrella version suitable for either a single instruction, or for multiple or continuing orders.

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About this development and manufacturing agreement

This agreement has been drawn to cover the structure of a complicated deal in simple terms you can edit yourself. The deal is that you have a product idea and maybe some designs. This agreement covers your instruction to a manufacturer to make for you. No further design work required. The products must pass your stringent tests and be made to your specification, which may be as simple or as complicated as you wish.

The manufacturer may be in any country.

Key features

  • Favours the designer/customer not the manufacturer, so puts you in the driving seat
  • Takes you logically through the practical provisions you will need
  • Assumes your intellectual property is of great value and must be protected.
  • Suitable for a contract with foreign supplier

The law in this agreement

There is little statute law to regulate this agreement so it relies on common law: contract, tort, and so on.

Of course, there are regulations affecting your product. We have provided for your manufacturer to comply with specific, exact requirements you have set out in a schedule.

Contents of this development and manufacturing agreement

The most important provisions are likely to be:

  • Manufacturer’s warranties - who they are, what qualifications they have.
  • Scope of work - what exactly is the deal
  • Product testing
  • Packaging and delivery
  • You can show their plant to potential customers or regulatory bodies
  • Production price
  • Use of sub-contractors
  • Manufacturer’s warranties
  • Option to prevent change of control of their business
  • Confidential Information, including your intellectual property
Draftsman

This document was written by a solicitor for Net Lawman. It complies with current South Africa law.

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