Food Contract Manufacturing Agreement

Once you have found that you have found the right fit, it is important to carefully document the terms of the agreement. While you should do everything in your power to ensure, as described above, that your contractual partner is competent, trustworthy and experienced, a carefully formulated contract protects against the unexpected. Think of the most difficult questions, for example.B. who is responsible for consumers in case of recall or damage? In drafting the contract, two objectives must be taken into account: first, to avoid the development of problems and, secondly, to clear conditions for mandatory liability in the event of a problem. 14. INSURANCE. Each party retains, for the duration of this agreement, comprehensive general liability insurance coverage, including contractual liability and liability insurance and recall insurance, fires, accidents, service interruptions, product liability, machinery, product recall (as well as economic disruptions or similar government measures) with an insurance company recognized nationally acceptable to both parties. This insurance is insured on the basis of occurrence; In other words, it covers all claims in the event of injury or damage resulting from an event that occurred during the life of the policy, regardless of whether the right is invoked after the end of the policy`s validity period. In particular, the manufacturer undertakes and agrees to maintain in force and efficiently, for the duration of this agreement, each of the insurance policies listed in Appendix D attached to it, listed at the levels and in accordance with the conditions it contains. By additional insured, the manufacturer designates the parts listed in Schedule D with minimum limits. Contracting parties transfer and coordinate to avoid overlapping coverage when not necessary, and the manufacturer provides a schedule for all insurance coverage and all other documents covered in Appendix D.

From time to time, the purchaser must make available to the manufacturer his own manufacturing formulas and processes (the “formula”) for the manufacture of certain food products as a snack, including popcorn and popcorn products (the “product” or “products”). To make sure you`re comfortable with your partner, don`t relocate your preliminary exams. It is important to assess first-hand the cleanliness, staff and working conditions of the plant. Also make sure that all of your potential partner`s so-called certifications are valid and up-to-date. Think of your co-manufacturer as an important part of your business that should share your values and goals. (c) the buyer must pay the manufacturer a production tax equal to the manufacturer`s actual material cost (“production tax”). 5.1 The manufacturer occasionally purchases equipment for the manufacture, assembly, packaging and/or manufacture of products, including, but not limited, to vertical filling and waterproofing machines, as well as conveyor belts listed in Schedule B (the “manufacturing equipment”). The manufacturer is committed to insuring the manufacturing device in accordance with industry practice. When you transfer a contract, you should get professional advice. Your lawyer can help you negotiate and understand an agreement that takes into account all the potential risks and obligations of each party.

You should ask your lawyer to explain the terms of any contract before signing, so that you understand what you accept. c) No delivery may contain, at the time of delivery, food additives, pesticides or other substances that are not safe for human consumption under the Federal Food And Cosmetic Drugs Act, with all amendments and amendments to this Act.