x Do businesses and shippers have batches of goods with specific designs, standards and quality that need to be outsourced to be made according to the prescribed product prototypes?
x Do you want to learn details about the content, regulations and need to update new contract samples for processing goods, products, etc.?
x Do you want to know how the rights and obligations of the ordering party and the receiving party are regulated in current processing contracts?
at Proship.vn will help you understand what a processing contract is, what the processing contract stipulates, and what rights and obligations the ordering party and the processing party have in this contract. At the same time, here you also know how it will be handled if you unilaterally terminate the contract.
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What is a processing contract?
To understand exactly what a processing contract is, you need to refer to Article 524 of the 2015 Civil Code. Specific quotes:
“A processing contract is an agreement between the parties, whereby the processing party performs work to create products according to the request of the ordering party, the ordering party receives the products and pays the wages.”
Sample goods processing contract 2024
Proship updates the latest basic processing contract form 2024:
SOCIALIST REPUBLIC OF VIETNAM
Independence – Freedom – Happiness
——————-
LATEST UPDATE PICTURES OF CONTAINER PROSHIP LOGISTICS TRACTOR
PROCESSING CONTRACT
Number: … /2018/HDGC/
Today, the day …………. month …………. year …………….., at …………………
We include:
Party A: (Ordering party) …………………………………………………………………..
Address: ……
Phone: ………
Fax: …… …
Tax code: ………
Account number: …………………
Represented by Mr. (Mrs.): ……………………… .
Party B: (Production and processing party)
Address: ………
Phone: ………
Fax: …………
Tax code: ………
Account number: ……………………
By Mr. ( Mrs): ………………………
Position: ………………………….. representative.
The two parties agreed to agree on the contract content as follows:
ARTICLE 1: OBJECT OF THE CONTRACT
1.1. Name of product to be produced:
1.2. Quality specifications:
……………………………………………………………………………………………………………
ARTICLE 2: MAIN AND SECONDARY MATERIALS
2.1. Party A is responsible for providing main ceramic materials:
a) Name of each type ……… Quantity ……….. Quality ………………….
b) Delivery time ……………… Location: ……………………………..
c) Responsibility for preservation: Party B takes all responsibility for the quantity and quality of materials provided by Party A and must use the correct type of materials delivered to produce the product.
2.2. Party B is responsible for providing raw materials for production:
a) Name of each type …………………… Quantity …………….. Unit price (or Quality regulations according to content, according to standards) ……………………………… …………………….
b) Party A provides money in advance to buy the above materials. Total cost is: ……………………………
ARTICLE 3: RIGHTS AND OBLIGATIONS OF PARTY A
3.1. Party A has the following obligations:
a) Provide raw materials in the correct quantity, quality, time and location to Party B, unless otherwise agreed; Provide necessary documents related to processing;
b) Instruct Party B to perform the contract;
c) Responsible for the legality of intellectual property rights of processed goods, raw materials, materials, machinery and equipment used for processing transferred to Party B.
d) Pay wages according to agreement.
3.2. Party B has the following rights:
a) Receive back all processed products, machinery, equipment rented or lent, raw materials, auxiliary materials, supplies, scrap, surplus materials, waste products, scrap in the correct quantity and quality , agreed method, deadline and location;
b) Appoint a representative to inspect and supervise the processing at the processing site, appoint experts to guide production techniques and check the quality of processed products as agreed in the processing contract.
c) Sell, destroy, donate on the spot processed products, leased or loaned machinery and equipment, raw materials, sub-materials, surplus supplies, waste products, scrap as agreed upon and in accordance with regulations. provisions of law.
d) Unilaterally terminate the performance of the contract and request compensation for damages when Party B seriously violates the contract;
e) In case the product does not ensure quality and Party A agrees to receive the product and request repair but Party B cannot repair within the agreed time limit, Party A has the right to cancel the contract and request claim compensation for damages.
ARTICLE 4: RIGHTS AND OBLIGATIONS OF PARTY B
4.1. Party B has the following obligations:
a) Preserving raw materials provided by Party A;
b) Supply part or all of the raw materials and materials for processing according to the agreement with Party A on quantity, quality, technical standards and price.
c) Notify Party A to exchange for other materials, if the materials do not meet quality standards; refuse to perform processing, if the use of raw materials can create products that are harmful to society; If you do not notify or refuse, you must be responsible for the product created;
d) Deliver the product to Party A in accordance with the agreed quantity, quality, method, time limit and location;
e) Keep information about the processing process and products created confidential;
f) Be responsible for product quality, except in cases where the product does not ensure quality due to the materials provided by Party A or due to unreasonable instructions from Party A.
g) Return remaining materials to Party A after completing the contract.
h) Responsible for the legality of goods processing activities in cases where processed goods are banned from business, export, or import.
4.2. Party B has the following rights:
a) Request Party A to deliver raw materials in accordance with the agreed quality, quantity, time and location;
b) Refuse unreasonable instructions from Party A, if you find that such instructions may reduce product quality, but must immediately notify Party A;
c) Request Party A to pay the full salary on time and by the agreed method.
ARTICLE 5: PRODUCT PRODUCTION AND DELIVERY TIME
5.1. Party B starts production from date: …………………………
During the production process, Party A has the right to inspect and request Party B to produce according to the agreed product model starting from the date of delivery. raw materials for production (if necessary).
Product delivery time: ………………………………..
5.2. If delivered in batches:
a) Phase 1: Date …………… location …………………………………………………………………..
b) Phase 2: Date …………… location …………………………………………………………………..
c) Phase 3: Date …………… location ………………………………………………………………..
If Party A does not receive on time, the storage penalty will be ………………
If Party B does not deliver the goods on time, the location will have to compensate for the costs ……………
ARTICLE 6: CONTRACT WARRANTY TERMS (If any)
ARTICLE 7: PAYMENT
Agreement to pay in full or in installments upon receipt of goods.
Payment by cash or bank transfer ……………………………
ARTICLE 8: LIABILITY FOR BREACH OF CONTRACT
7.1. Quality violations: (rework, price reduction, repair, material compensation...).
7.2. Quantity violation: Damaged raw materials must be compensated at current prices. ………………………………………………………
7.3. Signing a contract without performing it: Penalty up to ………% of contract value.
7.4. Violation of payment obligations: Compensation according to bank interest rate.
ARTICLE 9: PROCEDURES FOR RESOLVING CONTRACT DISPUTES
8.1. The two parties need to proactively notify each other of the progress of contract implementation. If any unfavorable problems arise, the parties promptly notify each other and proactively discuss and resolve them based on negotiation to ensure that both parties mutually beneficial (recorded).
8.2. In case there is a dispute that cannot be negotiated on its own, then the complaint will be filed in court.
ARTICLE 10: OTHER AGREEMENTS (If any)
ARTICLE 11: VALIDITY OF THE CONTRACT
This contract takes effect from ……………………………. until …………………
The two parties will hold a meeting and prepare a contract liquidation record after ……… day. Party A is responsible for organizing the event at an appropriate time and place.
The contract is made into ………. (………..) copies, each party keeps one copy and has equal value.
| REPRESENTED BY A | REPRESENTATIVE OF PARTY B |
| Position (Sign, seal) |
Position (Sign, seal) |
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Regulations on the rights and obligations of the parties in the processing contract
You need to clearly understand some of the basic rights and obligations of each party in the processing contract:
With the ordering party
The obligations and rights of the ordering party are regulated in relatively detail in Articles 544-545 of the 2015 Civil Code.
Related obligations
, according to Article 544, Obligations of the ordering party:
- Provide raw materials in accordance with the agreed quantity, quality, time and location to the processing party; Provide necessary documents related to processing;
- Instruct the processing party to perform the contract;
- Pay wages according to agreement.
Related benefits
Rights of the ordering party, according to Article 545:
- Receive processed products according to the agreed quantity, quality, method, deadline and location;
- Unilaterally terminate the performance of the contract and request compensation for damages when the processing party seriously violates the contract;
- In case the product does not meet quality standards and the ordering party agrees to receive the product and request repairs but the processing party cannot repair it within the agreed time limit, the ordering party has the right to cancel the contract. and claim damages.
With the processing party
According to Articles 546-547 in the same 2015 Civil Code, the obligations and rights of the processing party are specifically stipulated as follows:
Related obligations
Obligations of the processing party, according to Article 546:
- Preserving raw materials provided by the ordering party;
- Notify the ordering party to exchange for other materials if the materials do not meet quality standards; refuse to perform processing, if you know or should know that the use of raw materials can create products that are harmful to society;
- Deliver the product to the ordering party in accordance with the agreed quantity, quality, method, time limit and location;
- Keep information about the processing process and products created confidential;
- Be responsible for product quality, except in cases where the product does not ensure quality due to the materials provided by the ordering party or due to unreasonable instructions from the ordering party;
- Return remaining raw materials to the ordering party after completing the contract.
Related benefits
Rights of the processing party, according to Article 547:
- Require the ordering party to deliver raw materials in accordance with the agreed quality, quantity, deadline and location;
- Refuse unreasonable instructions from the ordering party during contract performance, if you see that such instructions may reduce product quality, but must immediately notify the ordering party;
- Require the ordering party to pay the full remuneration according to the agreed time and method.
Regulations on unilateral termination of processing contracts
According to the provisions of Article 551 of the 2015 Civil Code as follows:
“Article 551. Unilateral termination of processing contract performance
1. Each party has the right to unilaterally terminate the performance of the processing contract if continuing to perform the contract does not bring benefits to it, unless otherwise agreed or otherwise prescribed by law, but must notify the other party a reasonable time in advance.
2. The ordering party that unilaterally terminates the performance of the contract must pay wages corresponding to the work done, unless otherwise agreed. The processing party that unilaterally terminates the performance of the contract will not be paid wages, unless otherwise agreed.3. The party that unilaterally terminates the performance of the contract and causes damage to the other party must compensate."
What is a processing contract , its content, contract form and related regulations have been updated and shared by Proship Logistics. If your business wants to learn about garment processing contracts, software outsourcing contracts, mechanical or raw material processing contracts,... you can refer to this article and if you have any questions, please contact us. 0909 344 247 for answers.
