A manufacturing agreement is a legally binding contract between a company (the manufacturer) and another party (the client or purchaser) that specifies the terms of engagement of manufacturing a product. Its primary purpose is to outline the rights, responsibilities, and obligations of both parties regarding the production, quality control, pricing, delivery, and other important aspects of the manufacturing process.
A typical manufacturing agreement includes essential components such as product specifications, pricing and payment agreement terms, production and delivery schedules, quality assurance procedures, intellectual property rights, confidentiality provisions, liabilities and indemnities, and termination and dispute resolution clauses. These elements collectively define the terms of the manufacturing relationship.
Manufacturing agreements often include dispute resolution mechanisms, such as negotiation, mediation, or arbitration, to address conflicts between the parties. These mechanisms provide structured processes for resolving disagreements without resorting to litigation. The specific dispute resolution process is typically outlined within the agreement itself, ensuring that both parties understand how disputes will be handled in case they arise.You may also look into free agreement templates designed specifically for business and professional use by the Legitt team.