The Limited Agency Agreement is a crucial document for businesses operating in Malaysia who wish to appoint representatives with restricted authority to act on their behalf. This agreement is particularly relevant when companies need to establish a presence in new markets or territories while maintaining control over their agent's activities. It is commonly used in various commercial contexts, from distribution arrangements to sales representation, and must comply with Malaysian law, particularly the Contracts Act 1950 and relevant commercial regulations. The document typically includes detailed provisions on the scope of authority, territorial restrictions, compensation structures, and reporting requirements, making it essential for businesses seeking to expand their operations while minimizing risk through clearly defined agency parameters.
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1. Parties: Identifies and provides full details of the Principal and Agent, including registration numbers for companies
2. Background: Contextual information explaining the purpose of the agency relationship and the parties' intentions
3. Definitions: Defines key terms used throughout the agreement for clarity and legal certainty
4. Appointment and Scope: Clearly defines the appointment of the agent and the specific limitations of their authority
5. Territory: Specifies the geographical area where the agent is authorized to act
6. Duration: States the term of the agreement, including start date and duration
7. Agent's Duties and Responsibilities: Comprehensive list of the agent's obligations and required standard of performance
8. Principal's Duties and Responsibilities: Outlines the principal's obligations to the agent
9. Remuneration: Details of commission, fees, and payment terms
10. Reporting Requirements: Specifies the agent's reporting obligations to the principal
11. Intellectual Property: Provisions regarding the use of trademarks, logos, and other IP
12. Confidentiality: Obligations regarding confidential information handling
13. Termination: Grounds and procedures for termination of the agreement
14. Post-Termination: Obligations and restrictions following termination
15. General Provisions: Standard clauses including notices, amendments, governing law, etc.
1. Non-Competition: Restrictions on agent's competitive activities - include when exclusivity is important
2. Insurance: Requirements for insurance coverage - include when agent handles valuable goods/services
3. Bank Guarantee: Requirements for financial security - include when significant funds are handled
4. Compliance with Laws: Specific regulatory compliance requirements - include for regulated industries
5. Sub-Agents: Provisions regarding appointment of sub-agents - include if sub-agents might be needed
6. Force Majeure: Provisions for unforeseen circumstances - include for longer-term agreements
7. Data Protection: Specific data handling requirements - include when personal data is processed
1. Schedule 1 - Products/Services: Detailed list of products or services covered by the agency
2. Schedule 2 - Territory Details: Detailed description of geographical territories and any exclusions
3. Schedule 3 - Commission Structure: Detailed breakdown of commission calculations and payment terms
4. Schedule 4 - Reporting Templates: Standard forms for regular reporting requirements
5. Schedule 5 - Brand Guidelines: Guidelines for use of principal's branding and materials
6. Appendix A - Required Certifications: List of required licenses or certifications
7. Appendix B - Key Performance Indicators: Specific performance metrics and targets
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Distribution
Retail
Import/Export
Professional Services
Technology
Consumer Goods
Industrial Products
Real Estate
Financial Services
Telecommunications
Healthcare
Automotive
Relevant Teams
Legal
Commercial Operations
Business Development
Sales
Compliance
Risk Management
Operations
Contract Administration
International Business
Distribution
Relevant Roles
Chief Executive Officer
Commercial Director
Business Development Manager
Sales Director
Legal Counsel
Compliance Officer
Contract Manager
Operations Manager
Regional Manager
Distribution Manager
Agency Relationship Manager
Risk Manager
Commercial Operations Director
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