Manufacturing Sale

This is similar to the Future Commodity Sale. However the subject matter is not a commodity but a manufactured good; it is also a specific thing rather than a good interchangeable with other quantities of the same type of good. The contract involves both raw materials and labour, unlike other sales contracts which do not involve the latter. Payment of the entire price may be deferred or paid by installment.

  • the subject matter
    • must be described fully (quality, type, quantity, etc)
    • must be a good that is commonly sold based on a prior order, one which requires time to produce
  • the manufacturing process must be specified
  • unless the manufactured good is defective there can be no unilateral withdrawal or cancellation of the contract
    • the buyer may reserve an option to rescind if the good does not match the description
  • date of delivery must be specified, and stages of completion may also be specified

Damages and/or a penalty for non-performance or late performance are allowed although these do not obtain in cases of frustration or other reasonably unforeseeable events.