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Partnership Letter Of Intent for Malaysia

Partnership Letter Of Intent Template for Malaysia

A Partnership Letter of Intent under Malaysian law serves as a preliminary document outlining the intended formation of a business partnership between two or more parties. This document, while primarily non-binding except for specific provisions like confidentiality, establishes the framework for subsequent partnership negotiations and agreements. It addresses key aspects such as proposed ownership structure, capital contributions, and basic governance arrangements, all within the context of Malaysian business law, particularly the Partnership Act 1961 and related legislation. The document provides a formal structure for parties to express their serious intention to enter into a partnership while allowing flexibility for detailed negotiations.

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Partnership Letter Of Intent

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What is a Partnership Letter Of Intent?

The Partnership Letter of Intent is a crucial preliminary document used in Malaysian business practice when parties are considering forming a business partnership but have not yet committed to final terms. It serves as a roadmap for partnership negotiations, typically drafted after initial discussions but before detailed due diligence and final agreement. The document captures key commercial understandings while maintaining flexibility for future negotiations. Under Malaysian law, particularly considering the Partnership Act 1961 and Contracts Act 1950, this document primarily serves a non-binding function, except for specific provisions like confidentiality and exclusivity. It's particularly valuable in complex partnerships, cross-border ventures, or when significant assets or investments are involved, as it helps align parties' expectations and provides a structured framework for moving forward with the partnership formation process.

What sections should be included in a Partnership Letter Of Intent?

1. Parties: Full legal names and addresses of all potential partners

2. Introduction: Brief statement establishing the purpose of the letter and date

3. Background: Context of the proposed partnership and brief description of each party's business

4. Proposed Partnership Structure: Outline of intended partnership format, ownership split, and basic governance structure

5. Key Commercial Terms: Primary business terms including capital contributions, profit sharing, and major responsibilities

6. Timeline: Proposed schedule for due diligence, negotiation, and partnership formation

7. Confidentiality: Binding provisions regarding the confidentiality of discussions and shared information

8. Exclusivity: Any exclusivity period during which parties cannot negotiate with others

9. Non-Binding Nature: Clear statement that the LOI is non-binding except for specified clauses

10. Governing Law: Statement that the LOI is governed by Malaysian law

What sections are optional to include in a Partnership Letter Of Intent?

1. Due Diligence Process: Detailed outline of the due diligence process, used when significant investigation is required

2. Conditions Precedent: Specific conditions that must be met before proceeding, included when there are crucial prerequisites

3. Break Fee: Terms of any break fee payable if either party withdraws, used in high-value partnerships

4. Dispute Resolution: Specific dispute resolution mechanisms, included for complex or international partnerships

5. Costs and Expenses: Allocation of costs during the negotiation phase, relevant for complex transactions

6. Public Announcements: Rules for making public statements, important for high-profile partnerships

What schedules should be included in a Partnership Letter Of Intent?

1. Business Plan Overview: High-level summary of the proposed business plan and strategic objectives

2. Initial Capital Structure: Detailed breakdown of proposed capital contributions and ownership structure

3. Key Milestones: Detailed timeline of partnership formation and implementation steps

4. Asset Schedule: List of key assets to be contributed by each party to the partnership

5. Required Approvals: List of regulatory or third-party approvals needed for the partnership

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Malaysia

Document Type

Letter of Intent

Cost

Free to use
Relevant legal definitions























Clauses

























Relevant Industries

Manufacturing

Technology

Real Estate

Professional Services

Retail

Food and Beverage

Healthcare

Education

Construction

Agriculture

Tourism

Financial Services

Logistics

E-commerce

Renewable Energy

Relevant Teams

Legal

Corporate Development

Finance

Strategy

Business Development

Executive Leadership

Operations

Risk Management

Commercial

Investment

Compliance

Corporate Secretarial

Relevant Roles

Chief Executive Officer

Managing Director

Business Development Manager

Chief Financial Officer

Legal Counsel

Corporate Strategy Director

Partnership Manager

Investment Manager

Operations Director

Company Secretary

Risk Manager

Commercial Director

Venture Capital Manager

Business Owner

Entrepreneur

Industries





Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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