Exclusive Product Agreement

An exclusive product agreement is a contract made between a manufacturer and a supplier. It is designed to allow a manufacturer all rights for developing and manufacturing a specific product for the supplier.

  1. Purpose

    • This agreement gives all rights of a product to a manufacturer. This is called an exclusive product, because the supplier allows only a certain manufacturer the rights in manufacturing a product.

    Process

    • A supplier determines a new product it wants to manufacture. The supplier hires a manufacturer to develop the product for it. All specifications of the product are discussed and agreed upon. The manufacturer then develops and manufactures the product as per the supplier's specifications and agreement. The manufacturer is given all rights to the manufacturing of the product.

    Features

    • This type of agreement outlines the arrangement between the two parties. It includes the date, the names and addresses of both parties and grants the manufacturer the license for the development of the product. The agreement states all specifications regarding the product as well as terms and conditions of the agreement, including the amount of time the manufacturer is granted rights to manufacturing the product.

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