AGREEMENT TO MANUFACTURE OVERSEAS
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At a Glance
Appointment of Purchasing Agent Agreement (Australia)
About This Agreement
An overseas manufacturing agency agreement is a legal contract where a business (the principal) appoints an agent to organise manufacturing outside Australia, often in countries like China. The agent’s role is to find and manage suitable manufacturers, negotiate competitive pricing, and oversee quality assurance so that goods meet agreed standards.
This type of agreement clearly defines the rights and duties of the agent, including sourcing suppliers, arranging production, coordinating shipping, and protecting the principal’s interests. It also covers the commission structure, payment terms, and dispute resolution process.
For Australian businesses, having a professionally drafted international supplier agreement template like this ensures certainty and legal protection when engaging an agent for overseas manufacturing. It helps reduce risks, manage costs, and establish a secure framework for ongoing supply chain arrangements.
Key Features
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Exclusive appointment of an agent to purchase goods within a defined territory
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Commission structure based on wholesale price of goods purchased
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Principal’s obligations to reimburse reasonable expenses
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Agent’s duties to secure favourable terms, disclose principal identity, and maintain records
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Termination rights for fraud, misrepresentation, breach, or insolvency
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Post-termination restrictions, including non-compete and return of business assets
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Agreement governed by Australian law with clear jurisdiction provisions
Why Choose This Download?
This agreement is a professionally prepared, ready-to-use template designed for Australian businesses. It provides a clear legal framework for appointing a purchasing agent, protecting both the principal and the agent, and ensuring accountability in commercial dealings.
Who Should Use It?
This Appointment of Purchasing Agent Agreement is suitable for:
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Businesses appointing an exclusive purchasing agent in Australia or overseas
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Agents seeking clear protection for their role, commissions, and expenses
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Companies requiring a legally enforceable contract for supply chain management
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Organisations needing certainty in purchasing arrangements and compliance with Australian law
INCLUDES
An Agency Agreement when an agent is appointed to arrange the manufacture of goods overseas. An Agency Agreement is appointed to source an overseas manufacturer.
Includes clauses covering:
- Interpretation
- Provision of Services
- Price and Payment
- Indemnity
- Duties and Undertakings
- Your Duties and Undertakings
- Confidentiality
- Intellectual Property Rights
- Termination
- Effect of Termination
- Rights to Survive Termination
- Force Majeure
- Relationship of Parties
- Assignment
- Waiver
- Whole Agreement
- Notices
- Proper Law
- GST
- Terms and Option to Extend
- Licence of intellectual property
- Infringement
- Manufacturing – standards & testing
- Manufacturing faults
An agency agreement appointing an agent overseas involves designating a representative in a foreign country to act on behalf of the principal (such as a company) in various capacities, such as sales, marketing, or distribution. This type of agreement can be particularly beneficial for companies looking to expand their market presence internationally. Here are the key elements, benefits, and considerations of such an agreement:
Parties Involved
- Scope of Authority
- Territory
- Duration
- Compensation
- Performance Targets
- Marketing and Branding
- Confidentiality and Intellectual Property
- Termination
- Compliance with Laws
- Dispute Resolution
### Example Scenario
A U.S.-based software company wants to expand its market to Europe. It enters into an overseas agency agreement with a European technology firm to act as its sales and support agent. The agreement grants the European firm the exclusive right to sell the software in specified European countries, sets sales targets, outlines marketing activities, and includes clauses on confidentiality, compensation, and dispute resolution.
Conclusion
An agency agreement appointing an agent overseas can be a strategic move for companies looking to expand their international footprint. By carefully crafting the agreement and selecting the right agent, companies can effectively enter new markets, increase sales, and build a strong global presence while mitigating the risks associated with international business operations.
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