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A Manufacturing and Supply Contract is an agreement between a manufacturer or supplier and a buyer for the manufacture and sale of goods. A manufacturer or supplier is the party that produces and sells goods or products to the buyer. The manufacturer can be an individual or an organization. The buyer is the party that orders or purchases the goods from the supplier.
This document is used when a buyer wants to engage the services of a manufacturer to produce certain goods according to the buyer's specifications. For example, a prospective buyer can contract a product manufacturer to produce blenders and the buyer will provide the design, colour and voltage of the blender. In other words, the buyer provides the intellectual property which will be used to produce the goods, while the supplier does the actual production. Goods that can be manufactured under this contract are tangible goods, such as machines, equipment, furniture, phones, laptops, refrigerators and other electronics.
This agreement outlines the terms and conditions for the manufacture and sale of the goods. This include, but not limited to, the description of the goods that will be manufactured, the design or specifications of the goods, shipment and delivery of the goods, the supplier's warranties, insurance, and term and termination of the contract.
This document is different from the Sales of Goods Agreement because the sales agreement is used for sale of goods only and not specifically for the manufacture of goods. That is, in a Sales of Goods Agreement, the seller is simply a retailer and not the manufacturer of the goods.
How to use this document
After completing this document, it should be printed and signed by the parties. If either of the parties is an individual, the individual should sign the document.
If either of the parties is a company, the common seal of the company should be affixed on the document and either two directors or one director and one secretary should sign the document on the column provided for their signature in the document.
Also, if either of the parties is any other organization other than a company (this includes partnership and sole proprietorship businesses registered as business names, incorporated trustees, etc.), one authorized representative of that organization should sign the document.
After both parties have signed the documents and the documents have properly attested to by the witnesses (as the case may be), each party should keep at least one copy of the signed document for record purposes.
Both federal and state laws regulate the manufacture, sale and purchase of goods in Nigeria. In this case,the Sale of Goods Act, which is the federal law and Sale of Goods laws of various states in Nigeria will apply to this document.
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