This Discount Agreement template is designed for use in Malaysian commercial transactions where parties wish to establish a formal framework for ongoing discount arrangements. The document is particularly valuable when businesses need to formalize volume-based discounts, rebate structures, or promotional pricing agreements. It incorporates key requirements under Malaysian law, including compliance with the Contracts Act 1950 and relevant pricing regulations. The agreement is commonly used in supplier-distributor relationships, bulk purchasing arrangements, and long-term commercial partnerships where regular discounting is a key component of the business relationship. It includes essential provisions for discount calculation, reporting requirements, minimum purchase commitments (if applicable), and implementation procedures.
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1. Parties: Identifies and provides full details of all parties to the agreement
2. Background: Sets out the context and commercial relationship between the parties
3. Definitions: Defines key terms used throughout the agreement
4. Discount Structure: Details the basic discount mechanism, rates, and calculation methods
5. Duration and Term: Specifies the period during which the discount agreement is valid
6. Payment Terms: Outlines when and how payments should be made, including any credit terms
7. Implementation: Describes how the discount will be applied in practice
8. Reporting Requirements: Specifies any reporting obligations between parties regarding sales and discount calculations
9. Confidentiality: Protects sensitive commercial information shared between parties
10. Termination: Sets out circumstances and process for ending the agreement
11. Governing Law: Specifies Malaysian law as governing law and jurisdiction
1. Volume Commitments: Include when discounts are tied to minimum purchase volumes
2. Exclusivity Provisions: Include when there are exclusive dealing arrangements
3. Marketing Obligations: Include when parties have specific promotional responsibilities
4. Audit Rights: Include when regular auditing of discount calculations is required
5. Change Control: Include when flexibility is needed to modify discount terms
6. Force Majeure: Include when protection against unforeseen events is required
7. Anti-Corruption: Include when dealing with government entities or high-risk sectors
8. Data Protection: Include when personal data processing is involved
1. Schedule 1 - Product List: Detailed list of products or services subject to the discount arrangement
2. Schedule 2 - Discount Rates: Comprehensive breakdown of discount percentages and thresholds
3. Schedule 3 - Calculation Examples: Practical examples showing how discounts are calculated
4. Schedule 4 - Reporting Template: Standard format for regular reporting of sales and discount calculations
5. Appendix A - Contact Details: Key contact persons for both parties
6. Appendix B - Implementation Timeline: Timeline for rolling out the discount program
Relevant legal definitions
Clauses
Relevant Industries
Retail
Manufacturing
Fast-Moving Consumer Goods
Electronics
Automotive
Pharmaceuticals
Industrial Equipment
Construction Materials
Telecommunications
Food and Beverage
Relevant Teams
Legal
Commercial
Finance
Procurement
Sales
Business Development
Operations
Supply Chain
Account Management
Compliance
Relevant Roles
Commercial Director
Procurement Manager
Sales Director
Finance Manager
Legal Counsel
Commercial Operations Manager
Business Development Manager
Contract Administrator
Pricing Analyst
Supply Chain Manager
Account Manager
Chief Financial Officer
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