Easy to Use Legal Templates

Quickly and easily create any legal agreement for you or your team.

Affordable Plans

Straightforward pricing plans and bespoke packages built to simplify all your legal demands.

Vast Document Library

Zegal’s comprehensive collection of agreements means you always have what you need at your fingertips.

How to create a Manufacturing Agreement template

Choose your Zegal Plan
Access 2000+ Legal Templates

What is a Manufacturing Agreement Template?

A Manufacturing Agreement is a contract between two parties for the manufacture and sale of goods.

Create Now

Why choose Zegal?

With Zegal, you can reduce legal risks and improve the efficiency of your contract workflow, allowing you to focus on your core business operations.

Our platform is flexible, scalable, and tailored to the needs of your business.

What is a Manufacturing Agreement?

manufacturing agreement

A Manufacturing Agreement is a contract between two parties for the manufacture and sale of goods.

A Manufacturing Agreement sets out clearly the type, quantity, and specifications of the goods to be manufactured, as well as the purchase price and payment terms.

A Manufacturing Agreement also sets out any minimum purchase obligations, warranties given in respect of the goods, and how title and risks in those goods pass.

What is the purpose of a Manufacturing Agreement?

A Manufacturing Agreement helps to govern the relationship between a manufacturer, supplier, and distributor by outlining their duties and responsibilities. Businesses use this agreement to improve the supply chain, protect their rights and save cost.

Most businesses that work as a supplier or distributor need this agreement because they often purchase bulk amounts of goods from the manufacturer and distribute them in local markets. So, having a well-drafted manufacturing agreement will give them a strong legal footing in case of any disputes in the future.

What should be included in a Manufacturing Agreement?

These are the important things that should be included in a Manufacturing Agreement. I.e.;

Product Specification: A well-written product specification will help both parties to avoid error, save time and cost which ultimately leads to better growth of any business.

Duration of the agreement: This is the time period of the agreement. Normally it ranges from 1 to 5 years. The duration can be extended upon mutual consent once the term of an agreement is over.

Payment terms: This includes detail about the payment terms. It can be a lump sum amount, installment, or payment cycle.

Confidentiality: Both parties should not leak any confidential information that may hamper the organization in any possible way.

Logistics information: A clear detail about shipping and logistics will help both parties to save time and money by tracking the shipment and getting the delivery on time.

Clause for damaged goods: A product can get damaged during the shipment process, so it should be made clear in the agreement, who is going to cover for the damage.

Termination: This includes the terms and conditions under which the agreement can be terminated. Normally a repeated breach of contract and poor quality of goods can lead to contract termination.

Features of Manufacturing Agreement

Cost Saving: Companies save on the cost of production. This includes labor and manpower costs, equipments and others.

Quality control: Manufacturers have better knowledge of quality control and so they are are better experienced to provide better end results.

Competence: Companies can focus on their core competencies and better direct resources when manufacturing is outsourced.

Scaled production: As contract manufacturers produce goods for multiple customers, they get raw materials for better price. Hence, the overal cost for companies reduces drastically too.


A Manufacturing Agreement is a legal document that defines the obligations and the rights of the manufacturer and distributor, in order to provide a specified product on pre-defined terms. The main purpose of having a manufacturing agreement is to give a clear understanding of the responsibilities, legal rights, and obligations of both parties, to ensure that the specified products, provided by the manufacturer, are delivered to the distributor accordingly.

You Might Also Like

Along with this document, make sure you see these other templates in our library:

The Zegal template library

Zegal's legal template library is a list of essential business documents for your everyday needs.

Whether you're a startupSME, or a larger enterprise, Zegal contract management will automate and speed up your legal processes.

Using Zegal will reduce risk, save money, and improve efficiency. Let us take care of the paperwork so you can focus on running your business.

Nice things people say about Zegal.