Business OS
Finance & AccountingFinancing

Manufacturing and Supply Agreement

This Manufacturing and Supply Agreement template is for businesses to contract with a manufacturer for the production and supply of goods. It outlines the terms and conditions, ensuring clarity on quality, delivery, and payment terms.

Updated 15d ago
manufacturingsupply agreementproductiongoodscontractSMEAfrica

{{company_name}}

{{company_address}}

Phone: {{phone}}

Email: {{email}}

Website: {{website}}

MANUFACTURING AND SUPPLY AGREEMENT

This Manufacturing and Supply Agreement ('Agreement') is made and entered into on this {{day}} day of {{month}}, {{year}} ('Effective Date'), by and between:

{{Manufacturer_Company_Name}}, a company duly incorporated under the laws of {{country}}, with its principal place of business at {{Manufacturer_Address}} (hereinafter referred to as the 'Manufacturer'); and

{{Buyer_Company_Name}}, a company duly incorporated under the laws of {{country}}, with its principal place of business at {{Buyer_Address}} (hereinafter referred to as the 'Buyer').

The Manufacturer and Buyer are hereinafter collectively referred to as the 'Parties' and individually as a 'Party'.

1. RECITAL

WHEREAS, the Buyer desires to purchase goods described in Schedule A (the 'Goods') from the Manufacturer, and the Manufacturer desires to manufacture and supply the Goods to the Buyer, in accordance with the terms and conditions set forth in this Agreement.

2. ORDERING PROCEDURE

2.1. The Buyer shall place orders for the Goods by submitting a written purchase order ('Purchase Order') to the Manufacturer. Each Purchase Order shall specify the type, quantity, and desired delivery date of the Goods.

2.2. The Manufacturer shall confirm receipt of each Purchase Order within {{number}} business days. A Purchase Order shall be deemed accepted by the Manufacturer unless the Manufacturer notifies the Buyer of its rejection or proposed modifications within {{number}} business days of receipt.

2.3. The minimum order quantity for each type of Good shall be {{minimum_order_quantity}} units.

3. MANUFACTURING AND SUPPLY

3.1. The Manufacturer shall manufacture the Goods in accordance with the specifications provided in Schedule A ('Specifications') and any other written instructions provided by the Buyer.

3.2. The Manufacturer shall use commercially reasonable efforts to deliver the Goods by the delivery dates specified in the accepted Purchase Orders.

3.3. The Goods shall be packaged in a manner suitable for transport and protection against damage, in accordance with industry standards and any specific instructions from the Buyer.

4. QUALITY CONTROL AND INSPECTION

4.1. The Manufacturer shall implement and maintain quality control procedures to ensure that the Goods conform to the Specifications.

4.2. The Buyer shall have the right to inspect the Goods at the Manufacturer's facility during the manufacturing process and prior to shipment, upon reasonable notice.

4.3. If, upon inspection, the Goods are found to be non-conforming, the Buyer shall notify the Manufacturer within {{number}} days of inspection. The Manufacturer shall, at its own expense, promptly repair or replace the non-conforming Goods.

5. DELIVERY AND ACCEPTANCE

5.1. Delivery of the Goods shall be Ex Works (EXW) Manufacturer's facility, unless otherwise agreed in writing.

5.2. Risk of loss or damage to the Goods shall pass to the Buyer upon delivery in accordance with Section 5.1.

5.3. The Buyer shall notify the Manufacturer of any claims for shortages or visible damage to the Goods within {{number}} days of receipt.

6. PRICES AND PAYMENT

6.1. The prices for the Goods are set forth in Schedule B ('Prices'). All Prices are in {{currency_code}} and are exclusive of any applicable taxes, duties, and shipping costs, which shall be borne by the Buyer.

6.2. The Manufacturer shall invoice the Buyer upon shipment of the Goods. Payment terms are net {{number}} days from the date of invoice.

6.3. Overdue payments shall accrue interest at a rate of {{interest_rate}}% per annum, or the maximum rate permitted by law, whichever is lower.

7. CONFIDENTIALITY

7.1. Both Parties agree to keep confidential all non-public information disclosed by one Party to the other, whether orally or in writing, that is designated as confidential or that, by its nature, would reasonably be understood to be confidential ('Confidential Information').

7.2. Confidential Information shall not be disclosed to any third party without the prior written consent of the disclosing Party.

8. TERM AND TERMINATION

8.1. This Agreement shall commence on the Effective Date and shall continue for a period of {{term_length}} years, unless terminated earlier in accordance with this Section.

8.2. Either Party may terminate this Agreement upon {{number}} days prior written notice if the other Party materially breaches any of its obligations hereunder and fails to cure such breach within the notice period.

8.3. Upon termination of this Agreement, the Buyer shall pay for all Goods delivered or in progress up to the effective date of termination.

9. GOVERNING LAW AND DISPUTE RESOLUTION

9.1. This Agreement shall be governed by and construed in accordance with the laws of {{country}}.

9.2. Any dispute arising out of or in connection with this Agreement, including any question regarding its existence, validity, or termination, shall be referred to and finally resolved by arbitration in {{city}}, {{country}}, in accordance with the arbitration rules of {{Arbitration_Institution}}.

10. ENTIRE AGREEMENT

10.1. This Agreement, including its Schedules, constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior discussions, negotiations, and agreements, whether written or oral.

IN WITNESS WHEREOF

The Parties hereto have executed this Manufacturing and Supply Agreement as of the Effective Date first written above.

FOR AND ON BEHALF OF {{Manufacturer_Company_Name}}

___________________________________

Name: {{Manufacturer_Signatory_Name}}

Title: {{Manufacturer_Signatory_Title}}

Date: {{date}}

FOR AND ON BEHALF OF {{Buyer_Company_Name}}

___________________________________

Name: {{Buyer_Signatory_Name}}

Title: {{Buyer_Signatory_Title}}

Date: {{date}}

Related templates