INDUSTRY AND MANUFACTURING

In the manufacturing industry, the legal issues are complex and in many cases very important for the business.

​

Contracts that regulate purchasing, sales and production are often complex and difficult to interpret. Not infrequently, the contracts actually consist of a number of different agreements that are applied in a certain order, and these can be standard contracts or company-specific contracts. These can be difficult to interpret and it is often tricky to get a clear picture of what commitments they entail. 

 

Many larger companies have a well-established routine for how contracts are carried out in the business. if you are selling to or purchasing from these larger companies, you should carefully review the business contracts before accepting the terms. You should be careful not to take responsibility for circumstances beyond your control. You should also be well acquainted with what the contract regulates regarding insurance, internal policies and routines. You should also be aware of what your responsibilities are e.g. patent infringement or in the event of a dispute.

​

By being knowledgeable and following a reliable structure, you can reduce the risks your business is exposed to. In many cases, a lack of insight into the contract can leave you exposed to a higher risk of negative consequences - without careful observation, you may even be completely unaware that such risks existed. It is important to seek help in interpreting a contract if you cannot fully interpret it on your own. Too many people enter into a contract without understanding its meaning, in some cases without even looking at the contract before accepting it. 

​

There are a number of relevant production contracts that you should be well acquainted with if you work regularly in manufacturing, such as NL 17, NL 09, Incoterms and NLS 10.