Responsible, mutually beneficial and transparent cooperation is strategically much more profitable than the option in which the brand owner or manufacturer signs a contract, hoping that, in the case of force majeure, to shy away from responsibility. It is better to clarify at the earliest stage possible.
Who is the owner?
The development of the recipe of the beverage falls under the remit of copyright law. Who will own these rights? If the relevant legal agreements are not signed, including the complete transfer of copyright, the right holder remains to be the manufacturer. The same goes for the design of the packaging. In the case of unfair interaction of the manufacturer with its outsourced designer, these rights may remain with the third-party contractor, who can legally, at any time, make a claim regarding the illegal use of his creation/work on the packaging.
Who is responsible for mistakes?
It is necessary to very clearly identify in advance the areas of responsibility, calculate all possible risks, and communicate with the partner what actions will be taken in the event of; production of substandard products, a delay in production or any other circumstances which may lead to losses for both the customer and the manufacturer. Who pays in what case and how much.
Who pays for unexpected expenses?
In the event of an incorrect calculation of time needed to complete project, unexpected costs may arise. For example, costs associated with the changing of suppliers, additional purchases and logistics costs. Who will foot the bill?
It may seem that these issues are natural and do not require special attention outside of the official contract, but history shows that in any difficult situation, each side will claim damages from the partner. Having solved these issues in advance, one can form a reliable and legal sound partnership.
