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Notes on outsourcing contracting for Start-up

TTC Tech March 15, 2021 0 Comments

Outsourcing contract is a legally effective document to demonstrate the signing of cooperation between the outsourcing enterprise and the outsourcing unit. However, how to build a contract to ensure benefits for both parties and still complete the procedures? The following article will help you answer the above question.

What is outsourcing contract?
Outsourcing is a commercial activity. Accordingly, the outsourcing unit performs one or more jobs in the software production process of the outsourcing party to enjoy profits.

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This processing contract is an agreement between the parties. In which, the outsourcing party performs work to create products according to the orders of the outsourced enterprise. The lessee will be responsible for acceptance of the work, products and payment of wages.

In terms of economic contracts, contracts for receiving production and outsourcing are an agreement between the parties. Accordingly, the processor performs one or more stages in the production process. Commodity products at the request of the party ordering the outsourcing software for the purpose of receiving remuneration. And the outsourcing party, after receiving the software, will conduct testing, acceptance testing and payment of remuneration.

Characteristics of the contract
Typically, when it comes to receiving outsourcing work, the legal consultant is classified as a commercial / economic outsourcing contract. Therefore, this type of contract will possess some of the following characteristics:

  • Bilateral contract: That is, the ordering party and the lessee both have rights and obligations under the contract. That is, the interests of one party will be the obligations of the other party and vice versa.
  • Consent contract: After being signed, this processing contract will be effective immediately. Only terminated when the contract expires.

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  • Compensation contract: The outsourcing party is obliged to pay the processor in accordance with the signed contract.
  • The object of a processing contract: the implementation of one or more stages in the production of new products. New products produced under contracts for commercial processing are called processed goods. For software outsourcing, the outsourced goods are software products performed by the outsourced party at the request of the outsourced enterprise.
  • Form: processing contract in commerce must be made in writing or in another form with equivalent legal value.

How to write a proper production outsourcing contract


Outsourcing contract, software production is still an administrative document. So the first step to getting a standard processing contract is just to follow the current administrative document drafting rules. This is clearly specified from the layout, font, font size, alignment …

The most important part of the contract is the content. This is the part that defines the terms, obligations and rights that stakeholders need to perform. A contract for outsourcing production or outsourcing may include the following contents:

  • Names and addresses of related parties, signing the processing contract. Usually it includes the processor and the processor.
  • Content and specific requirements of processed products
  • The principal rights and obligations of the supplier and the processor;
  • Remuneration and payment method;
  • Effective term of processing contract, …

In addition to the above content, when composing a contract, you also need to pay attention to the rights and obligations of the parties involved. It is important to ensure fairness for both tenants and tenants.

Above is the information about the most accurate outsourcing contract today. This contract is important in both the machining process to the finished product. Therefore, make sure your contract does not have any errors that can be discouraged by others. Good luck!

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