Document background
The Exclusive Trade Agreement is a crucial commercial contract used when a supplier wishes to grant exclusive rights to another party to distribute their products or services within Malaysia or specified territories. This document is particularly important in the Malaysian business context, where exclusive distribution arrangements must comply with local competition laws and trading regulations. The agreement typically includes detailed provisions on territorial scope, minimum purchase commitments, quality standards, and performance metrics, while ensuring compliance with Malaysian legislation such as the Contracts Act 1950 and Competition Act 2010. It's commonly used when businesses want to establish a strong, controlled presence in specific markets while maintaining brand integrity and distribution quality.
