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Basic Sales Contract for Malaysia

Basic Sales Contract Template for Malaysia

This document is a comprehensive Basic Sales Contract template designed for use in Malaysia, governed by Malaysian law including the Contracts Act 1950 and Sale of Goods Act 1957. It provides a structured framework for commercial transactions involving the sale and purchase of goods, incorporating essential elements such as payment terms, delivery conditions, warranties, and risk transfer provisions. The contract template is drafted to ensure compliance with local regulatory requirements while maintaining flexibility to accommodate various types of goods and commercial arrangements.

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Basic Sales Contract

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What is a Basic Sales Contract?

The Basic Sales Contract serves as a fundamental legal instrument for documenting sales transactions in Malaysia, suitable for both business-to-business and business-to-consumer arrangements. This document is essential when parties need to formalize their sales agreement while ensuring compliance with Malaysian commercial law, including the Contracts Act 1950 and Sale of Goods Act 1957. It captures crucial elements such as product specifications, pricing, delivery terms, warranties, and risk allocation, while providing sufficient flexibility to accommodate various types of goods and commercial arrangements. The contract is particularly valuable for businesses seeking to establish clear terms and conditions for their sales transactions while maintaining legal enforceability within the Malaysian jurisdiction.

What sections should be included in a Basic Sales Contract?

1. Parties: Identifies and defines the seller and buyer with their full legal names, registration numbers (if companies), and addresses

2. Background: Provides context for the sale and briefly describes the transaction purpose

3. Definitions: Defines key terms used throughout the agreement for clarity and consistency

4. Sale and Purchase: Core provision stating the seller's agreement to sell and buyer's agreement to purchase the goods

5. Price and Payment: Specifies the purchase price, payment terms, method of payment, and any applicable taxes

6. Delivery: Details the delivery terms, timing, location, and transfer of risk

7. Title and Risk: Specifies when ownership transfers and who bears risk of loss or damage

8. Warranties: Standard warranties regarding the goods' quality, condition, and fitness for purpose

9. Termination: Circumstances under which either party may terminate the contract

10. Governing Law: Specifies Malaysian law as governing law and jurisdiction for disputes

11. Execution: Signature blocks and execution formalities

What sections are optional to include in a Basic Sales Contract?

1. Inspection Rights: Include when buyer requires right to inspect goods before acceptance

2. Insurance: Add when specific insurance requirements need to be maintained by either party

3. Intellectual Property: Include when the goods involve any IP rights or licenses

4. Confidentiality: Add when sensitive information will be exchanged

5. Force Majeure: Include when parties want specific provisions for unforeseen circumstances

6. Export/Import Requirements: Add for international sales or when specific permits are required

7. Return Policy: Include when dealing with returnable goods or specific return conditions

8. Dispute Resolution: Add when parties want specific dispute resolution procedures beyond court litigation

What schedules should be included in a Basic Sales Contract?

1. Schedule 1 - Product Specifications: Detailed description of the goods, including quantities, specifications, and technical requirements

2. Schedule 2 - Price List: Detailed pricing information, especially if multiple products or pricing tiers are involved

3. Schedule 3 - Delivery Schedule: Detailed delivery timeline and requirements if complex or multiple deliveries

4. Schedule 4 - Quality Standards: Specific quality requirements and testing procedures if applicable

5. Appendix A - Form of Purchase Order: Standard form for placing orders under the contract if multiple orders are contemplated

6. Appendix B - Acceptance Certificate: Form for confirming receipt and acceptance of goods if formal acceptance process is required

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Malaysia

Document Type

Sale Agreement

Cost

Free to use
Relevant legal definitions






















Clauses























Relevant Industries

Retail

Manufacturing

Consumer Goods

Electronics

Food and Beverage

Automotive

Textiles

Construction Materials

Industrial Equipment

Agriculture

Medical Supplies

Furniture and Home Goods

Relevant Teams

Legal

Sales

Procurement

Commercial

Operations

Finance

Supply Chain

Business Development

Administration

Compliance

Relevant Roles

Sales Manager

Procurement Manager

Business Development Manager

Commercial Director

Legal Counsel

Contract Administrator

Supply Chain Manager

Operations Manager

General Manager

Company Secretary

Chief Financial Officer

Purchasing Officer

Sales Representative

Business Owner

Industries






Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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