Thursday, December 10, 2015

How to manage Made in Italy manufacturing deals and relationships





The Italian manufacturing industry is composed of many firms which are family businesses, are small/medium-sized and, generally speaking, are not assisted by attorneys or a law firm in their day to day activities. Thus, it is very common that parties entering into a commercial relationship do not sign a simplesupply agreement. This is it particularly true in the case of a language barrier, even because Italian manufacturers are not so good with the English language or foreign relationships.

Under Italian law, except for in specific cases where it is required (as below reported), a contract does not need to be in written form in order to be valid and enforceable. Therefore, the common practice described above, under certain circumstances, meets the very basic Italian legal requirements. Furthermore what is a real problem is the long burocracy and tax iter that Italy still has got.
Absent a written contract, the relationship is ruled according to both the oral agreement and the contents of the purchase orders. In addition, parties sometimes make reference to their general terms and conditions. The thing is that oral agreements are more dangerous than written contracts, because as the motto says "Verba volant, scripta manent", written words remain and are more reliable than oral words. As a matter of fact, the lack of a written contract triggers some uncertainties regarding the legal qualification of the relationship and, as a consequence, on the rules applicable in cases of: termination, labor aspects and in general potential litigation.

Indeed, Italian law adopts two different approaches where: raw materials necessary to manufacture the goods requested by the buyer are responsibility of the contractor. In this case, the contract is qualified as “appalto.” Or the buyer provides to the contractor raw materials and components needed to manufacture the goods. In this case, the contract is qualified as “subfornitura.”

Italian manufacturing is synonimous of experience, professionalism, passion, technological research and innovation. For each customer every kind of manufacturing company will design the most reliable and fitting solution to achieve his full satisfaction: this is what we mean with Italian high quality and precision.

We can find Made in Italy gaskets and high quality solutions in plastic, silicone and rubber for various sectors: engineering, marine, aerospace, road, food and automotive idustry; public and private transport; lighting; refrigeration; agriculture; sport and furniture. Significant investments are going to contribute in the near future to a new management based on winning relationship with customers, in order to guarantee maximum satisfaction, continuous improvement and customer loyalty

The Italian manufacturing industry is composed of many firms which are family businesses, are small/medium-sized and, generally speaking, are not assisted by attorneys or a law firm in their day to day activities. Thus, it is very common that parties entering into a commercial relationship do not sign a simplesupply agreement. This is it particularly true in the case of a language barrier, even because Italian manufacturers are not so good with the English language or foreign relationships.

Under Italian law, except for in specific cases where it is required (as below reported), a contract does not need to be in written form in order to be valid and enforceable. Therefore, the common practice described above, under certain circumstances, meets the very basic Italian legal requirements. Furthermore what is a real problem is the long burocracy and tax iter that Italy still has got.
Absent a written contract, the relationship is ruled according to both the oral agreement and the contents of the purchase orders. In addition, parties sometimes make reference to their general terms and conditions. The thing is that oral agreements are more dangerous than written contracts, because as the motto says "Verba volant, scripta manent", written words remain and are more reliable than oral words. As a matter of fact, the lack of a written contract triggers some uncertainties regarding the legal qualification of the relationship and, as a consequence, on the rules applicable in cases of: termination, labor aspects and in general potential litigation.

Indeed, Italian law adopts two different approaches where: raw materials necessary to manufacture the goods requested by the buyer are responsibility of the contractor. In this case, the contract is qualified as “appalto.” Or the buyer provides to the contractor raw materials and components needed to manufacture the goods. In this case, the contract is qualified as “subfornitura.”

Italian manufacturing is synonimous of experience, professionalism, passion, technological research and innovation. For each customer every kind of manufacturing company will design the most reliable and fitting solution to achieve his full satisfaction: this is what we mean with Italian high quality and precision.

We can find Made in Italy gaskets and high quality solutions in plastic, silicone and rubber for various sectors: engineering, marine, aerospace, road, food and automotive idustry; public and private transport; lighting; refrigeration; agriculture; sport and furniture. Significant investments are going to contribute in the near future to a new management based on winning relationship with customers, in order to guarantee maximum satisfaction, continuous improvement and customer loyalty

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