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Toll Manufacturing Contract Template for England and Wales

A Toll Manufacturing Contract is a legally binding agreement governed by English and Welsh law, where one company (the toll manufacturer) agrees to manufacture products for another company (the principal) using raw materials or semi-finished goods provided by or specified by the principal. The agreement details manufacturing specifications, quality standards, pricing, intellectual property rights, and regulatory compliance requirements. It includes provisions for material handling, production schedules, quality control procedures, and delivery terms.

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What is a Toll Manufacturing Contract?

The Toll Manufacturing Contract is essential for businesses seeking to outsource their manufacturing processes while maintaining control over product specifications and quality. This agreement, governed by English and Welsh law, establishes the framework for a manufacturing relationship where the principal provides materials or specifications while the manufacturer contributes expertise, facilities, and labor. It addresses crucial aspects such as quality control, regulatory compliance, intellectual property protection, and risk allocation. The contract is particularly relevant in industries requiring specialized manufacturing capabilities or when companies want to focus on core competencies while outsourcing production.

What sections should be included in a Toll Manufacturing Contract?

1. Parties: Identification and details of the manufacturer and the customer

2. Background: Context of the agreement and brief description of the manufacturing arrangement

3. Definitions: Key terms used throughout the agreement including relevant legislation and regulatory requirements

4. Manufacturing Services: Detailed description of manufacturing services to be provided, including compliance with relevant legislation

5. Quality Requirements: Quality standards, specifications, and testing procedures in accordance with relevant regulations

6. Supply of Materials: Arrangements for supply of raw materials and components, including safety and handling requirements

7. Pricing and Payment: Manufacturing fees, payment terms, and invoicing procedures

8. Delivery Terms: Logistics, delivery schedules, and shipping arrangements

9. Intellectual Property: IP ownership and licensing provisions in accordance with relevant IP legislation

10. Confidentiality: Protection of confidential information and trade secrets

11. Term and Termination: Duration of agreement and termination provisions

What sections are optional to include in a Toll Manufacturing Contract?

1. Forecasting: Production forecasting requirements for long-term manufacturing relationships

2. Exclusivity: Exclusive manufacturing arrangements and competition law compliance

3. Technology Transfer: Process for transferring manufacturing technology and associated IP rights

4. Regulatory Compliance: Industry-specific regulatory requirements and compliance procedures

5. Environmental Compliance: Environmental standards and requirements under relevant environmental legislation

What schedules should be included in a Toll Manufacturing Contract?

1. Product Specifications: Detailed technical specifications of products to be manufactured

2. Quality Standards: Specific quality requirements and testing procedures

3. Pricing Schedule: Detailed breakdown of manufacturing costs and fees

4. Production Schedule: Manufacturing timelines and delivery schedules

5. Material Specifications: Specifications for raw materials and components

6. Service Level Agreement: Performance metrics and service levels

7. Quality Control Procedures: Detailed quality control and testing procedures

8. Equipment Schedule: List of manufacturing equipment to be used

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

England and Wales

Cost

Free to use

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