A new product development contract is a sort of an arrangement which is made between two or more parties. The arrangement so made is in reference to a new product which is to be developed by one party for the other party involved in the contract. A sample of a new product development contract is given below. In the sample a parent company is contracting a research and development firm to develop a new product.
Sample New Product Development Contract
This contract is being signed between M/s Harper Brothers Ltd. and Monroe & Monroe Co. Pvt. Ltd. on the 3rd of June 2013.
As per the document M/s Harper Brothers Ltd. has contracted Monroe & Monroe Co. Pvt. Ltd. to develop a new product for their company. The details are as given below.
Details of the Contracting Company:
Name: M/s Harper Bothers Ltd.
Signatory: Mr. Daniel Harper
Designation: Chief Executive Officer
Contact No.: 35873896
Details of Developing Company:
Name: Monroe & Monroe CO. Pvt. Ltd.
Signatory: Mr. John Somers
Designation: General Manager
Contact No.: 375983525
Details of the Product:
Type: Energy drink.
Terms and Conditions:
1. The developing company has to develop a formula for an energy drink as per the specifications of the contracting company/ buyer within the specified deadline.
2. Once the formula is developed it is to be assigned to the contracting firm, and the developers hold no right over the drink.
3. Any information or knowledge collected during the development of this product belongs to the contracting company.
4. In case the developing firm makes use of collected information for other company, the contracting firm has a right to take legal actions.
5. The product may be managed by both the parties involved; the authority to make any decision regarding this is assigned to the contracting firm.
Mr. Daniel Harper Mr. John Somers