JOB-WORK / CONTRACT MANUFACTURING AGREEMENT
BETWEEN
__________, of __________, acting through __________ (the "Principal");
AND
__________, of __________, PAN __________, acting through __________ (the "Job Worker").
- 1. THE WORK
- 2. MATERIAL, TOOLS AND WASTAGE
2.2 All material, parts, dies, moulds, jigs, drawings and tools that the Principal gives the Job Worker remain the Principal's property. The Job Worker shall keep them separate and marked, use them only for the Principal's work, keep them insured or at its own risk against loss, theft and fire, not pledge, sell, lend or hold them against any claim, and return them on demand and on ending this Agreement. The Job Worker shall keep a stock register of them and let the Principal inspect it and the material on reasonable notice.
- 3. QUALITY, DELIVERY AND PAPERS
3.2 Every movement of material or Goods between the Parties shall go with a proper delivery challan and the other papers the tax and transport laws require. The Parties shall follow the rules on goods sent for job work that are in force, including the time within which goods sent must be returned or accounted for, and each shall keep the records those rules require.
3.3 Risk in the Principal's material and tools stays with the Job Worker while they are in its premises or custody. Risk in the Goods passes to the Principal on delivery to the Principal or its carrier, unless the Parties agree otherwise in writing.
- 4. PRICE AND PAYMENT
4.2 The Principal may set off against payment the value of any material or tools lost or damaged through the Job Worker's fault and any Goods rejected under clause 3.1.
- 5. WORKERS, LAW AND DESIGNS
5.1 The Job Worker alone employs, pays and supervises the people who do the work. They are not the Principal's workers, and the Job Worker shall pay their wages and comply with the factory, labour, provident fund, ESI, pollution and safety laws that apply to its unit, holding all the licences its work needs. The Job Worker shall meet any claim by those workers against the Principal arising from their employment.
5.2 The Principal's designs, drawings, specifications, brands and know-how stay the Principal's. The Job Worker shall not use them for anyone else, shall not make or sell the Goods or look-alikes to anyone else, and shall not keep copies after this Agreement ends.
- 6. CONFIDENTIALITY
- 7. TERM AND ENDING
- 8. DISPUTES AND GOVERNING LAW
8.3 This Agreement is governed by the laws of India.
- 9. GENERAL
9.1 This Agreement is the entire agreement between the parties about its subject matter and replaces all earlier discussion, whether oral or written.
9.2 No change to this Agreement is effective unless it is in writing and signed by all the parties.
9.3 If any provision is held invalid or unenforceable, the rest of this Agreement continues in effect.
9.4 A notice under this Agreement must be in writing and sent to the other party at its address stated above, or to a new address it has given in writing. It is treated as received on delivery, or on the third day after posting by registered post.
SIGNED for the PRINCIPAL
__________
Signature: ______________________________
SIGNED for the JOB WORKER
__________
Signature: ______________________________
WITNESSES