The International Agency Agreement is essential for foreign companies seeking to establish a commercial presence in Malaysia through local representation without setting up a direct subsidiary. This document is particularly crucial as it needs to comply with Malaysian legal requirements while accommodating international business practices. The agreement typically includes detailed provisions for territory definition, commission structures, performance requirements, and compliance with local regulations such as the Contracts Act 1950 and Agency Law Act 1950. It's commonly used when foreign manufacturers, suppliers, or service providers want to expand their market presence in Malaysia through a local agent who will promote and sell their products or services. The document must carefully balance the interests of both parties while ensuring compliance with Malaysian agency laws, competition regulations, and international trade requirements.
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1. Parties: Identification of the Principal and Agent, including full legal names, registration numbers, and registered addresses
2. Background: Context of the agreement, nature of the Principal's business, and purpose of appointing an Agent
3. Definitions: Key terms used throughout the agreement, including Territory, Products/Services, Commission, etc.
4. Appointment and Territory: Formal appointment of the Agent and definition of the geographical territory covered
5. Rights and Obligations of the Agent: Detailed responsibilities, performance requirements, and conduct expectations of the Agent
6. Rights and Obligations of the Principal: Principal's commitments, support provisions, and responsibilities to the Agent
7. Commission Structure: Detailed breakdown of commission rates, calculation methods, and payment terms
8. Term and Termination: Duration of the agreement and circumstances under which it can be terminated
9. Confidentiality: Protection of confidential information and trade secrets
10. Governing Law and Jurisdiction: Specification of Malaysian law as governing law and jurisdiction for disputes
11. General Provisions: Standard clauses including notices, amendments, assignment, and entire agreement provisions
1. Non-Competition: Restrictions on Agent's ability to represent competing products/services, used when exclusivity is important
2. Intellectual Property: Rights and restrictions regarding use of trademarks and other IP, essential when branded products are involved
3. Performance Targets: Specific sales or performance targets, included when quantifiable goals are part of the agreement
4. Training and Support: Details of training and support provided by Principal, important for technical or complex products
5. Insurance Requirements: Specific insurance coverage requirements for the Agent, relevant for high-risk products or services
6. Data Protection: Compliance with data protection laws, necessary when personal data processing is involved
7. Force Majeure: Provisions for unforeseen circumstances, particularly relevant for international agreements
8. Anti-Corruption: Compliance with anti-corruption laws, essential for international business relationships
1. Schedule 1: Territory Definition: Detailed description of geographical territory including any excluded areas
2. Schedule 2: Products/Services: Comprehensive list of products or services covered by the agreement
3. Schedule 3: Commission Structure: Detailed commission calculations, including any variations by product or volume
4. Schedule 4: Performance Criteria: Specific performance metrics and evaluation criteria
5. Schedule 5: Trademark Usage Guidelines: Rules and guidelines for using Principal's trademarks and branding
6. Appendix A: Standard Operating Procedures: Detailed procedures for order processing, reporting, and communication
7. Appendix B: Reporting Templates: Standard forms for regular reporting and documentation
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Consumer Goods
Technology
Pharmaceuticals
Industrial Equipment
Automotive
Fashion and Retail
Food and Beverage
Electronics
Construction Materials
Chemical Products
Medical Devices
Software and IT Services
Professional Services
Relevant Teams
Legal
Commercial
Business Development
Sales
Compliance
International Business
Operations
Corporate Secretarial
Risk Management
Finance
Relevant Roles
Chief Executive Officer
Commercial Director
Business Development Manager
Sales Director
Legal Counsel
Compliance Officer
International Business Manager
Contract Manager
Chief Operating Officer
Export Manager
Regional Sales Manager
Company Secretary
General Counsel
Managing Director
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