The Agreement Between Customer And Supplier is a fundamental commercial document used to formalize supply relationships in Malaysia. It is essential for businesses engaged in the regular purchase or supply of goods or services, providing a legally robust framework that complies with Malaysian commercial law. This agreement type is particularly important as it establishes clear terms for pricing, delivery, quality standards, and risk allocation while incorporating necessary protections under Malaysian legislation. It's commonly used across various industries and can be adapted for both simple and complex supply arrangements, making it a vital tool for businesses operating in Malaysia's dynamic commercial environment. The document includes comprehensive provisions for dispute resolution, performance monitoring, and relationship management, reflecting modern business practices while ensuring compliance with local legal requirements.
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1. Parties: Identifies and provides full details of the customer and supplier, including registration numbers and registered addresses
2. Background: Sets out the context of the agreement and brief description of why the parties are entering into it
3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes rules of interpretation
4. Scope of Supply: Details the goods and/or services to be provided by the supplier to the customer
5. Price and Payment Terms: Specifies pricing, payment schedule, invoicing process, and payment methods
6. Delivery and Performance: Outlines delivery terms, timelines, and performance standards for the goods/services
7. Quality and Compliance: Sets quality standards, compliance requirements, and inspection/acceptance procedures
8. Warranties and Representations: Details warranties provided for goods/services and representations made by both parties
9. Liability and Indemnification: Establishes liability limits and indemnification obligations of both parties
10. Term and Termination: Specifies contract duration, renewal terms, and circumstances for termination
11. Confidentiality: Defines confidential information and obligations to protect it
12. Governing Law and Dispute Resolution: Specifies Malaysian law as governing law and outlines dispute resolution procedures
13. General Provisions: Contains standard boilerplate clauses including force majeure, notices, and assignment
1. Intellectual Property Rights: Include when the supply involves software, designs, or other IP-protected materials
2. Data Protection: Include when personal data processing is involved in the supply relationship
3. Insurance: Include when specific insurance requirements need to be maintained by either party
4. Environmental Compliance: Include when supply involves environmental considerations or hazardous materials
5. Export Control: Include when goods or services may be subject to export regulations
6. Service Levels: Include when specific performance metrics need to be maintained
7. Change Control: Include when the scope or specifications may need formal procedures for modification
8. Business Continuity: Include for critical supplies requiring disaster recovery planning
9. Anti-Corruption Compliance: Include when dealing with government contracts or high-risk industries
1. Schedule 1 - Specification of Goods/Services: Detailed technical specifications of goods or services to be supplied
2. Schedule 2 - Pricing Schedule: Detailed breakdown of prices, including any volume discounts or price adjustment mechanisms
3. Schedule 3 - Service Levels and KPIs: Detailed performance metrics and measurement criteria
4. Schedule 4 - Form of Purchase Order: Standard form for ordering goods/services under the agreement
5. Schedule 5 - Key Personnel: List of key personnel from both parties responsible for managing the relationship
6. Appendix A - Technical Requirements: Detailed technical requirements and standards to be met
7. Appendix B - Delivery Locations: List of approved delivery locations and specific requirements for each
8. Appendix C - Quality Control Procedures: Detailed quality control and testing procedures
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