The Importance of Standardized Contracts for Manufacturers


The written contract is the foundation of any business relationship. However, after practicing law for many years, I am still surprised by the state of many of my clients’ manufacturing contracts. It is not a rare occasion when a new client calls me to discuss a contract issue or to interpret a contract provision. Of course, the first thing I request is the contract. The client says – “Sure. I will send it right over.” However, what I frequently receive is a simple purchase order or an unsigned summary of business terms that is full of more questions than answers. This is simply not good business practice, which promptly triggers my crusade to educate the client about the importance of developing a standardized contract that the client can use as a starting point for every transaction.

Developing a standard contract is important for many reasons, including the following...

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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