The Purchase And Supply Agreement serves as a foundational document for establishing long-term commercial relationships between suppliers and purchasers in Malaysia. It is particularly crucial for businesses engaged in regular procurement of goods or materials, providing a structured framework that governs the ongoing supply relationship. The agreement, compliant with Malaysian commercial law, typically includes detailed provisions on ordering procedures, delivery requirements, quality standards, pricing mechanisms, and risk allocation. It's essential for businesses seeking to establish secure supply chains, ensure consistent quality standards, and maintain reliable business relationships while protecting their interests under Malaysian jurisdiction. The document is commonly used in various industries from manufacturing to retail, and can be adapted to accommodate specific industry requirements or regulatory compliance needs.
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1. Parties: Identification and details of the supplier and purchaser
2. Background: Context of the agreement and brief description of the business relationship
3. Definitions: Definitions of key terms used throughout the agreement
4. Supply Obligations: Core obligations of the supplier regarding the provision of goods
5. Purchase Obligations: Core obligations of the purchaser including minimum purchase commitments if any
6. Ordering Process: Procedures for placing and accepting orders
7. Delivery Terms: Delivery timeframes, locations, and related obligations
8. Price and Payment: Pricing structure, payment terms, and invoicing procedures
9. Quality Requirements: Quality standards, specifications, and quality control procedures
10. Title and Risk: Transfer of ownership and risk in the goods
11. Warranties: Warranties regarding the goods and services provided
12. Liability and Indemnification: Limitation of liability and indemnification obligations
13. Term and Termination: Duration of agreement and termination provisions
14. Confidentiality: Protection of confidential information
15. Force Majeure: Provisions for handling events beyond parties' control
16. Governing Law and Dispute Resolution: Applicable law and dispute resolution mechanisms
17. General Provisions: Standard boilerplate clauses including notices, assignment, and amendments
1. Compliance with Laws: Specific section on regulatory compliance - include when dealing with regulated industries or products
2. Insurance: Insurance requirements - include when significant risk transfer is involved
3. Intellectual Property: IP rights and licenses - include when proprietary technology or branding is involved
4. Export/Import Controls: International trade compliance - include for cross-border transactions
5. Business Continuity: Disaster recovery and business continuity - include for critical supply relationships
6. Sustainability Requirements: Environmental and sustainability obligations - include when relevant to industry or customer requirements
7. Anti-Corruption: Anti-bribery and corruption provisions - include for high-risk jurisdictions or industries
8. Data Protection: Personal data handling requirements - include when personal data is processed
1. Schedule 1 - Product Specifications: Detailed technical specifications of products
2. Schedule 2 - Pricing Schedule: Detailed pricing structure, including any volume discounts or pricing mechanisms
3. Schedule 3 - Service Levels: Performance metrics and service level requirements
4. Schedule 4 - Delivery Locations: List of approved delivery locations and specific requirements
5. Schedule 5 - Quality Standards: Detailed quality requirements and testing procedures
6. Schedule 6 - Key Contacts: Contact details for key personnel from both parties
7. Schedule 7 - Form of Purchase Order: Standard form of purchase order to be used
8. Schedule 8 - Reporting Requirements: Templates and requirements for regular reporting
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