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What is a Production Contract?

Simple to make, a Production Contract is an effective way for manufacturers to record the terms of an arrangement to provide manufacturing to a product developer. Making this essential contract can help both parties to avoid disagreements in the future. Different from the blank PDF templates that you might come across elsewhere, each Production Agreement from Rocket Lawyer comes with the option of Document Defense®, so an attorney can assess the situation and take action if you don't receive payment or face any other problem.

When to use a Production Contract:

  • You're a product developer hiring a manufacturer to make your product.
  • You're a manufacturer being hired by a product developer.

Sample Production Contract

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Production Contract

 

Order Number:

 

This Contract (this "Contract") is made effective as of , by and between , of , , , and , of , ,

 

. PURPOSE OF CONTRACT. Customer is in the business of developing . Manufacturer agrees to produce Customers product(s), hereinafter referred to as Products, in the quantity, price, and specifications determined in this agreement.

 

. MANUFACTURED ITEMS. agrees to manufacture, and agrees to purchase, the following products (the "Goods") in accordance with the terms and conditions of this Contract:

 

Description Quantity Unit Price Total Price

 

 

TOTAL

 

. PRODUCT STANDARDS. The Goods shall comply with the 's quotation dated and incorporated into this Contract by this reference.

 

. TITLE/RISK OF LOSS. Title to and risk of loss of goods shall pass to the Customer upon delivery F.O.B. at the Manufacturer's plant to an agent of the Customer including a common carrier, notwithstanding any prepayment or allowance of freight by the Manufacturer.

. PAYMENT. Payment shall be made to

 

Payment discount terms are a percent discount if total bill is paid within days.

In addition to any other right or remedy provided by law, if fails to pay for the Goods when due, has the option to treat such failure to pay as a material breach of this Contract, and may cancel this Contract and/or seek legal remedies.

 

. DELIVERY. Time is of the essence in the performance of this Contract.

 

. INDEMNITY AND INSURANCE. Manufacturer agrees to hold Customer harmless and to defend any and all actions, claims, suits, or proceedings that may subject Customer to liability for defects in the Products. Manufacturer represents that it now has in force a valid comprehensive liability insurance policy in the amount of with , and that the policy covers the risk of liability for defects in the Products. If this insurance coverage should change or lapse, Manufacturer agrees that Customer may pay the insurance premiums and deduct this expenditure from the payment due on the Products, beginning with the first shipment of Products following the expenditure.

 

.

. INSPECTION. , upon receiving possession of the Goods, shall have a reasonable opportunity to inspect the Goods to determine if the Goods conform to the requirements of this Contract. If , in good faith, determines that all or a portion of the Goods are non-conforming, may return the Goods to at must provide written notice to of the reason for rejecting the Goods. will have days from the return of the Goods to remedy such defects under the terms of this Contract.

 

. DEFAULT. The occurrence of any of the following shall constitute a material default under this Contract:

 

a. The failure to make a required payment when due.

 

b. The insolvency or bankruptcy of either party.

 

c. The subjection of any of either party's property to any levy, seizure, general assignment for the benefit of creditors, application or sale for or by any creditor or government agency.

 

d. The failure to make available or deliver the Goods in the time and manner provided for in this Contract.

 

. REMEDIES ON DEFAULT. In addition to any and all other rights a party may have available according to law, if a party defaults by failing to substantially perform any provision, term or condition of this Contract (including without limitation the failure to make a monetary payment when due), the other party may terminate the Contract by providing written notice to the defaulting party. This notice shall describe with sufficient detail the nature of the default. The party receiving such notice shall have days from the effective date of such notice to cure the default(s). Unless waived by a party providing notice, the failure to cure the default(s) within such time period shall result in the automatic termination of this Contract.

 

, or other labor disputes

Both parties acknowledge that during the course of this Contract, each may obtain confidential information regarding the other party's business. Both parties agree to treat all such information and the terms of this Contract as confidential and to take all reasonable precautions against disclosure of such information to unauthorized third parties during and after the term of this Contract. Upon request by an owner, all documents relating to the confidential information will be returned to such owner.

 

. CONFIDENTIALITY. Upon termination of this Contract, will return to all records, notes, documentation and other items that were used, created, or controlled by during the term of this Contract.

 

. NOTICE. Any notice or communication required or permitted under this Contract shall be sufficiently given if delivered in person or by certified mail, return receipt requested, to the addresses listed above or to such other address as one party may have furnished to the other in writing. The notice shall be deemed received when delivered or signed for, or on the third day after mailing if not signed for.

 

. ENTIRE CONTRACT. This Contract contains the entire agreement of the parties regarding the subject matter of this Contract, and there are no other promises or conditions in any other agreement whether oral or written. This Contract supersedes any prior written or oral agreements between the parties.

 

. AMENDMENT. This Contract may be modified or amended if the amendment is made in writing and signed by both parties.

 

. SEVERABILITY. If any provision of this Contract shall be held to be invalid or unenforceable for any reason, the remaining provisions shall continue to be valid and enforceable. If a court finds that any provision of this Contract is invalid or unenforceable, but that by limiting such provision it would become valid and enforceable, then such provision shall be deemed to be written, construed, and enforced as so limited.

 

. WAIVER OF CONTRACTUAL RIGHT. The failure of either party to enforce any provision of this Contract shall not be construed as a waiver or limitation of that party's right to subsequently enforce and compel strict compliance with every provision of this Contract.

 

. ATTORNEY'S FEES. If any action at law or in equity is brought to enforce or interpret the provisions of this Agreement, the prevailing party will be entitled to reasonable attorneys' fees in addition to any other relief to which that party may be entitled.

 

. HEADINGS. Headings used in this Agreement are provided for convenience only and shall not be used to construe meaning or intent.

 

. APPLICABLE LAW. This Contract shall be governed by the laws of the State of .

 

. SIGNATURES. This Contract shall be signed on behalf of by , and on behalf of by .

 

 

 

CUSTOMER:

 

 

 

By: Date:

 

 

 

MANUFACTURER:

 

 

 

By: Date:

 

 

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Production Contract FAQs

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  • Should manufacturers write Production Agreements for every client they are hired by?

    Even if your business is brand new, it is important to get the details of your work in writing. This list of benefits may help to inform your decision to use one:

    • Roles and responsibilities are understood by both parties
    • There are no surprises about how long the agreement lasts
    • Neither party is confused about the payment schedule

    Ultimately, if you or the client fail to sign this document, you may not get to enjoy the associated protections.

  • What should be covered in my contract for production?

    In order to complete your Production Contract with Rocket Lawyer, you will need to prepare the following details in advance:

    • Your client's contact information
    • What services will be provided
    • What the duration of the contract is
    • How much you will charge

    As you probably expect from an agreement like this, any Production Contract that you make using Rocket Lawyer will also contain the typical language about the independent work relationship, confidentiality, and dispute resolution. When you make your agreement, you'll also have the ability to decide which state's jurisdiction it falls under. More customization is permitted, if needed.

  • Where can I create a production contract template online?

    If you want to create this document using Rocket Lawyer, you can use the instructions that are presented. After asking a set of questions about the engagement, Rocket Lawyer will build your Production Contract. It can be helpful to have your contract checked by an attorney in our nationwide On Call network once you have made it. This solution is often notably less time-consuming than finding and working with the average attorney where invoices might add up to anywhere between a few hundred dollars to thousands, if the situation is complex.

    If you have any doubts before you begin, you can connect with a lawyer . You might also like to browse our collection of legal documents for small business owners and operators .

  • Am I required to do anything else after drafting a Production Contract?

    Upon finishing this document with the help of Rocket Lawyer, you'll be able to review it at any time and place. With a Premium membership, you can edit, copy, save it as a Word or PDF document, print it, or sign it electronically with RocketSign® when you're ready. Attached alongside each Production Contract, there's a series of suggested steps you can take to finalize your document. The product developer should always get copies of the final agreement.

  • Where do I have my Production Contracts checked out by a professional?

    If you opt to do it by yourself, finding a lawyer to review your contract could be time-consuming and fairly costly. Sometimes an attorney won't even agree to review a contract that they did not author. In the event that an attorney does decide to offer feedback, they would still make you pay their standard fees for doing so. A more cost-effective option is to go through the Rocket Lawyer attorney network. As a Premium member, you can get your agreements examined by an experienced business attorney. Whether you need to create more copies of your Production Agreement or other documents for your business, we are here for you.

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