A Manufacturing Agreement is basically a mutual agreement between two parties for the manufacture and sale of goods. It is a standard document that clearly sets out the type, quantity, and specifications of the goods to be manufactured, delivery of goods, price of goods, and payment terms, e.g. lump sum payment, installments, or payment cycles. It also covers the minimum purchase obligations, warranties given in respect of the goods, duration of the contract, and notice period for termination; and events that will trigger the termination of the contract.
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