An exclusive manufacturing and supply agreement, as the name suggests, establishes a relationship for exclusive manufacturing and supply of products between the manufacturer and the purchaser. With this agreement, the manufacturer and purchaser agree on certain terms and conditions that define scope of their relationship that is based on their manufacturing and purchasing deal. This agreement binds the manufacturer to manufacture the product exclusively for the purchaser and at the same time also binds the purchaser to purchase the manufactured goods in the quantity as specified in the agreement.
This agreement also includes the representations, warranties and mutual covenants in context with the manufacturing and supply. The purchaser also agrees to purchase the manufactured goods subject to the rules, terms and regulations of the agreement. Most important clause of this agreement is exclusivity, according to which till the termination of agreement manufacturer agrees to supply the manufactured goods in the required quantities solely to the purchaser mentioned in the agreement and to no other party.
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