Many of our customers engage manufacturers in China. When engaging manufacturers to produce goods in China, it is important to have an agreement in place that governs the terms and clearly communicates the relationship between the parties. This can be managed through a Manufacturing Agreement Template.
Each Business Kitz resource contains comprehensive guidance notes as well as helpful suggestions to assist you with populating the document.
‍Manufacturing Agreement Template Document details
Our Manufacturing Agreement Template (China) includes an introductory template letter that covers:
- The nature of the engagement
- How the agreement should be executed
An editable schedule with detailed instructions that you can amend (to suit your business) that covers:
- Start and end dates
- Manufacturer details
- Principal details
- Products
- Prices
- Invoicing details
- Payment details
Terms and conditions that you can amend that covers:
- Term of agreement
- Products
- Product samples
- Sample approval
- Orders, supply of product and packaging
- Delivery and risk in transit
- Invoicing
- Intellectual property
- Indemnity
- Confidential information
- Public statements and press release
- Manufacturer’s representations and warranties
- Limitation of liability
- Third party liability
- Non-compete
- Restraints
- GST
- Dispute resolution
- Termination
- Manufacturer’s duties upon termination
- General legal protections
Why does my business need a Manufacturing Agreement Template (China)?‍
Enforceability can sometimes be an issue when carrying out agreements with overseas manufacturers, however, agreements often act as a base for negotiated terms and allow for clear communication between the parties. High quality agreements will include terms that clearly define the services expected, testing, management of product standards, faults, clear delivery terms, and liability and intellectual property ownership and protection.
More established businesses in China are more likely to honour terms to an agreement, however, it is important to remember that doing business in China means transacting with a different culture which therefore requires adapting and understanding social cues and differing norms and values.
If you are new to doing business in China, it is important to negotiate an arrangement that allows you to test out the service providers or manufacturers before agreeing to large orders. We have observed that some of the most common issues include product faults or unclear communication around product specifications and delivery.
If your business is going to then distribute the products from the manufacturer, we recommend consider whether you require a Product Distribution Agreement.
Business Kitz Manufacturing Agreement (China) Agreement Template is highly comprehensive and adaptable, however, if you find that you require advice or assistance, we recommend you contact one of our consultants or our partnering law firm, Legal Kitz.
