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PLAYBOOK TEMPLATES
Manufacturing Services Agreement
A Manufacturing Services Agreement establishes how a manufacturer will produce goods on behalf of another party, often covering quality, delivery, and intellectual property. This playbook highlights negotiation tactics for pricing, warranty coverage, and supply chain continuity.
Termination Rights & Effects
Negotiation strategy
Ensure termination rights align with business goals. Negotiate reasonable notice periods and feasible post-termination obligations.
Seek clarity on termination triggers to avoid arbitrary termination. Ensure notice periods allow for operational adjustments.
Essential elements
1
Termination Triggers
Defines specific termination events.
2
Notice Period
Timeframe for termination notice.
3
Post-Termination Obligations
Duties after contract ends.
Action framework
ACCEPT
Propose edits if termination rights are unclear or misaligned with business objectives.
EDIT
Reject if termination rights are overly broad or lack mutual triggers.
ADD
Add language if termination rights are absent or insufficient.
PRO TIP
Always ensure termination clauses are compliant with jurisdiction-specific requirements.
Real-world examples
FAVORABLE
Preferred Termination Clause
"Either party may terminate this Agreement upon thirty (30) days written notice if the other party materially breaches any provision and fails to cure such breach within the notice period."
NEUTRAL
Standard Termination Clause
"Termination may occur with sixty (60) days notice for convenience, provided transition assistance is offered."
UNFAVORABLE
Broad Termination Rights
"Either party may terminate at any time without cause or notice."
Alternative scenarios & positions
High-Risk Projects
In high-risk projects, ensure termination rights are stringent to protect against potential losses.
Long-Term Contracts
For long-term contracts, include periodic review clauses to reassess termination rights.
Cross-Border Agreements
In cross-border agreements, ensure compliance with all relevant jurisdictional termination requirements.
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