Buying & production agreement

In our sector, we are excelling in creating new collections. From design to collection, everything is taken care of down to the last detail. But what is very often overlooked is the legal framework of the agreements with your producers. And in practice, that can sometimes become a problem. This has once again become apparent at various times in the current COVID-19 crisis and at the time of the ship that ran aground in the Suez Canal, resulting in all the delays.

Whether you buy finished product (RMG, ready-made garment) or supply materials yourself and have the product manufactured (CMT, cut-make trim), there are all kinds of legal issues that must be properly sealed. For example, it is important to record who has the intellectual property of the goods, but also who has the right of ownership or retention of title on the materials that are supplied to make the products.

During the corona crisis it once again became clear that if you have little or nothing on paper with your producer, you can be significantly disadvantaged. For example, the force majeure clause did apply to our own customers and they were sometimes able to avoid orders, while the obligation to purchase remained with the producer.

In addition, a good buying and production agreement will also refer to the applicable agreements on, for example, dimensions, quality, safety & compliance and care labelling. But also indispensable in this day and age: a code of conduct, corporate and social responsibility.

It is therefore essential not only to have good general terms and conditions with regard to your customers, but also to clearly state agreements with regard to supplier.

A good ‘buying & production agreement’ provides cement between all documentation and agreements that must be made with the producer. MODINT Credit & Finance, in collaboration with the people of Modint, supplies procurement & production services customized contracts that are fully tailored to your situation and needs. If you would like to know more, call MODINT Credit & Finance on 088-5054711, email us at or contact Antonio Barberi Ettaro of Modint.

Credit management for fashion, sports, shoes, textiles, home & living

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