The Material Supply Contract is essential for businesses operating in Malaysia that require a formal framework for the procurement and supply of materials. This document is particularly relevant in situations where there is an ongoing supply relationship requiring detailed terms for quality standards, delivery schedules, and pricing mechanisms. It ensures compliance with Malaysian legal requirements, including the Contracts Act 1950 and Sale of Goods Act 1957, while providing clear guidelines for both suppliers and purchasers. The contract is designed to protect both parties' interests by clearly defining responsibilities, risk allocation, and dispute resolution procedures within the Malaysian legal context.
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1. Parties: Identification and details of the supplier and purchaser, including registration numbers and addresses
2. Background: Context of the agreement and relationship between the parties
3. Definitions: Definitions of key terms used throughout the agreement
4. Supply Obligations: Core obligations of the supplier including quality, quantity, and delivery requirements
5. Ordering Process: Procedures for placing and confirming orders, including lead times
6. Price and Payment: Pricing structure, payment terms, invoicing requirements, and payment methods
7. Delivery and Risk: Delivery terms, transfer of risk, and acceptance procedures
8. Quality Requirements: Quality standards, inspection rights, and rejection procedures
9. Warranties: Supplier warranties regarding products, quality, and compliance with laws
10. Term and Termination: Duration of the agreement and circumstances for termination
11. Limitation of Liability: Limitations and exclusions of liability for both parties
12. Confidentiality: Protection of confidential information exchanged during the relationship
13. Force Majeure: Events excusing performance and procedures during force majeure
14. Governing Law and Jurisdiction: Malaysian law as governing law and jurisdiction for disputes
15. General Provisions: Standard boilerplate clauses including notices, assignment, and entire agreement
1. International Shipping Terms: Include when materials are imported, covering Incoterms and customs requirements
2. Compliance with Environmental Regulations: Include for hazardous or regulated materials
3. Insurance Requirements: Include when specific insurance coverage is required due to high-value or hazardous materials
4. Bank Guarantee/Performance Bond: Include when security for performance is required
5. Intellectual Property Rights: Include when supplied materials involve patents, trademarks or proprietary technology
6. Anti-Corruption Compliance: Include for high-value contracts or government-related supplies
7. Change Control Procedure: Include when regular modifications to specifications or terms are anticipated
8. Safety Data Requirements: Include for chemical or hazardous materials
1. Schedule 1 - Material Specifications: Detailed technical specifications of materials to be supplied
2. Schedule 2 - Pricing Schedule: Detailed pricing structure, including any volume discounts or price adjustment mechanisms
3. Schedule 3 - Delivery Schedule: Agreed delivery timeframes and locations
4. Schedule 4 - Quality Standards: Specific quality requirements, testing procedures, and acceptance criteria
5. Schedule 5 - Key Performance Indicators: Performance metrics and measurement criteria
6. Appendix A - Order Form Template: Standard form for placing orders under the agreement
7. Appendix B - Technical Documentation: Required certificates, safety data sheets, and technical documents
8. Appendix C - Contact Details: Key contact persons and their details for both parties
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