International Manufacturing Contract

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This contract is used when one company arranges for another company in a different country to manufacture its products; in other words, international subcontracting. The company which subcontracts the manufacturing is usually based in a developed country, and the manufacturer in a developing country.

The company provides the manufacturer with all the specifications, and possibly also the materials necessary for the manufacturing process. Similarly, the rights to industrial property (patents, industrial designs and utility models, etc.) which are to be used for manufacturing the products, are conferred to the manufacturer for the term of the contract.

Tne contract establishes the requirements which the manufacturer must satisfy concerning the quality of the products, certification, quantities, conditions and dates of delivery, etc. Clauses regarding the inspection and testing of the products are also established by the company which contracts out the manufacture, or by its own clientes; modifications to orders, as well as guarantees and compensation in case of breach of contract.

The model may be used for the contracting of products such as food, textiles and clothing, furniture, toys, electronics, components, machinery, etc.