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Consignment Manufacturing Agreement

Consignment Manufacturing Agreement Template for Switzerland

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Key Requirements PROMPT example:

Consignment Manufacturing Agreement

"I need a Consignment Manufacturing Agreement for my Swiss pharmaceutical company to engage a local manufacturer to produce medical devices using our proprietary materials, with strict quality control requirements and regulatory compliance provisions, starting March 2025."

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Document background
A Consignment Manufacturing Agreement is essential when a company wants to outsource manufacturing while retaining ownership of materials throughout the production process. This document, governed by Swiss law, is particularly relevant for businesses seeking to maintain control over valuable or sensitive materials while leveraging external manufacturing capabilities. The agreement details the manufacturer's obligations regarding material handling, production standards, quality control, and finished product delivery, while addressing risk allocation and liability under Swiss legal framework. It is commonly used in industries where material costs are significant or where maintaining control over raw materials is crucial for quality, regulatory, or strategic reasons. The document structure follows Swiss contract law requirements and incorporates relevant manufacturing regulations and industry standards.
Suggested Sections

1. Parties: Identification of the consignor (materials owner) and manufacturer, including full legal names and addresses

2. Background: Context of the agreement, business relationship, and general purpose of the arrangement

3. Definitions: Definitions of key terms used throughout the agreement

4. Scope of Services: Detailed description of manufacturing services to be provided

5. Consignment Materials: Provisions regarding the supply, storage, and handling of consigned materials

6. Title and Risk: Ownership of materials, work-in-progress, and finished products; risk allocation

7. Manufacturing Standards: Quality requirements, compliance with specifications, and applicable standards

8. Forecasting and Production Planning: Process for forecasting, ordering, and production scheduling

9. Quality Control and Inspection: Quality control procedures, testing requirements, and inspection rights

10. Delivery and Acceptance: Terms for delivery of finished products and acceptance procedures

11. Pricing and Payment: Manufacturing fees, payment terms, and related financial provisions

12. Warranties: Warranties regarding manufacturing services and finished products

13. Liability and Indemnification: Allocation of liability and indemnification obligations

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

15. Confidentiality: Protection of confidential information and trade secrets

16. Governing Law and Jurisdiction: Choice of Swiss law and jurisdiction provisions

Optional Sections

1. Intellectual Property Rights: Detailed IP provisions when significant IP is involved in the manufacturing process

2. Environmental Compliance: Specific environmental obligations when manufacturing involves regulated materials or processes

3. Insurance: Detailed insurance requirements for high-value or high-risk manufacturing

4. Business Continuity: Disaster recovery and business continuity provisions for critical manufacturing relationships

5. Exclusivity: Exclusive manufacturing arrangements where applicable

6. Technology Transfer: Provisions for transfer of manufacturing technology or know-how

7. Regulatory Compliance: Industry-specific regulatory requirements (e.g., pharma, medical devices)

8. Change Control: Detailed change management procedures for regulated industries

Suggested Schedules

1. Manufacturing Specifications: Detailed technical specifications for the manufacturing process

2. Quality Requirements: Specific quality standards, testing procedures, and acceptance criteria

3. Pricing Schedule: Detailed breakdown of manufacturing costs and pricing calculations

4. Service Levels: Performance metrics and service level requirements

5. Consigned Materials List: Detailed list of materials to be provided by consignor

6. Equipment List: List of any specific equipment provided or required for manufacturing

7. Contact Details: Key contacts and escalation procedures

8. Standard Operating Procedures: Detailed operational procedures and requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈË°æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions



















































Clauses







































Relevant Industries

Pharmaceuticals

Electronics

Medical Devices

Automotive

Consumer Goods

Chemicals

Food and Beverage

Industrial Equipment

Aerospace

Textiles

Relevant Teams

Legal

Operations

Supply Chain

Quality Control

Procurement

Manufacturing

Compliance

Logistics

Production

Risk Management

Regulatory Affairs

Relevant Roles

Supply Chain Manager

Manufacturing Director

Quality Control Manager

Procurement Manager

Operations Director

Legal Counsel

Contract Manager

Production Manager

Logistics Manager

Compliance Officer

Chief Operating Officer

Materials Manager

Quality Assurance Director

Regulatory Affairs Manager

Factory Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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