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Release And Covenant Not To Sue for Malaysia

Release And Covenant Not To Sue Template for Malaysia

A comprehensive legal document governed by Malaysian law that formally releases one party from liability for specified claims or potential legal actions, coupled with a binding commitment not to initiate or pursue legal proceedings regarding these matters. This agreement is structured in accordance with Malaysian contract law principles, particularly the Contracts Act 1950, and includes detailed provisions for the scope of release, consideration, and enforcement mechanisms. The document serves as a risk management tool and dispute resolution instrument, providing certainty and finality to both parties while ensuring compliance with Malaysian legal requirements for valid contracts and releases.

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Release And Covenant Not To Sue

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What is a Release And Covenant Not To Sue?

The Release And Covenant Not to Sue agreement is a crucial legal instrument in Malaysian business and civil matters, designed to provide a definitive resolution to existing or potential disputes. This document is commonly used in situations where parties wish to settle disagreements, conclude business relationships, or manage risk exposure without resorting to litigation. It combines two powerful legal concepts: a release of claims and a forward-looking covenant not to sue, both governed by Malaysian law, particularly the Contracts Act 1950 and related statutes. The agreement is especially valuable in commercial settlements, employment terminations, accident claims, and business dissolutions, where it provides clarity and finality while ensuring legal enforceability within the Malaysian jurisdiction. The document typically includes detailed provisions about the claims being released, consideration provided, and the scope of the covenant not to sue, along with necessary representations and warranties to ensure its effectiveness.

What sections should be included in a Release And Covenant Not To Sue?

1. Parties: Identifies and defines all parties to the agreement, including the releasing party and the released party

2. Background: Provides context about the circumstances leading to the release, including any existing disputes or potential claims

3. Definitions: Defines key terms used throughout the agreement, including the scope of claims being released

4. Release: Core provision detailing the claims, rights, and causes of action being released

5. Covenant Not to Sue: Express commitment not to initiate or maintain any legal action regarding the released claims

6. Consideration: Details of the consideration being provided in exchange for the release

7. Representations and Warranties: Statements by the releasing party about their authority to grant the release and understanding of its implications

8. Governing Law: Specifies Malaysian law as governing law and jurisdiction

9. Entire Agreement: Confirms the document represents the complete agreement between parties

10. Execution: Signature blocks and execution requirements

What sections are optional to include in a Release And Covenant Not To Sue?

1. Confidentiality: Include when the parties wish to keep the existence or terms of the release confidential

2. Non-Disparagement: Include when parties agree not to make negative statements about each other

3. Return of Property: Include when there is physical or intellectual property to be returned as part of the settlement

4. Cooperation: Include when ongoing cooperation is needed for implementing the release

5. Insurance Claims: Include when insurance policies or claims are relevant to the release

6. Tax Matters: Include when the release involves payments with tax implications

7. Third Party Rights: Include when the release affects rights of parties not signing the agreement

What schedules should be included in a Release And Covenant Not To Sue?

1. Schedule of Released Claims: Detailed list of specific claims, disputes, or matters being released

2. Schedule of Released Parties: Comprehensive list of all parties benefiting from the release, including related entities if applicable

3. Schedule of Payments: Payment terms and schedule if the release involves financial consideration

4. Schedule of Excluded Claims: List of specific claims or rights explicitly excluded from the release

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

Release Agreement

Cost

Free to use
Relevant legal definitions

















Clauses
























Relevant Industries

Financial Services

Manufacturing

Construction

Real Estate

Technology

Healthcare

Retail

Professional Services

Energy

Transportation

Education

Insurance

Telecommunications

Relevant Teams

Legal

Compliance

Human Resources

Risk Management

Corporate Affairs

Executive Leadership

Operations

Finance

Business Development

Administrative Services

Relevant Roles

Legal Counsel

Risk Manager

Compliance Officer

Human Resources Director

Chief Legal Officer

Corporate Secretary

Business Development Manager

Contract Administrator

Chief Executive Officer

Chief Financial Officer

Operations Manager

Settlement Officer

Claims Manager

Dispute Resolution Specialist

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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