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Service Agreement Between Two Companies for Malaysia

Service Agreement Between Two Companies Template for Malaysia

A comprehensive legal document governed by Malaysian law that establishes a formal service arrangement between two companies. This agreement defines the scope of services, performance standards, payment terms, and mutual obligations of both parties. It includes provisions for service delivery, quality metrics, intellectual property rights, confidentiality, data protection under PDPA, dispute resolution mechanisms, and termination conditions, all while ensuring compliance with Malaysian commercial and contract law requirements.

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Service Agreement Between Two Companies

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What is a Service Agreement Between Two Companies?

The Service Agreement Between Two Companies is a fundamental commercial contract used in Malaysian business operations when one company wishes to engage another for specific services. This document is essential for businesses operating in Malaysia seeking to formalize their service relationships with clear terms and conditions. It encompasses critical elements such as service specifications, performance metrics, payment structures, and compliance requirements under Malaysian law, including the Contracts Act 1950 and other relevant legislation. The agreement serves to protect both parties' interests while ensuring clear accountability and risk allocation in the service relationship. It's particularly important for ongoing service arrangements where detailed service levels, quality standards, and operational procedures need to be clearly defined and legally binding.

What sections should be included in a Service Agreement Between Two Companies?

1. Parties: Identification of the service provider and service recipient with full corporate details

2. Background: Context of the agreement and brief description of the parties' business relationship

3. Definitions: Detailed definitions of terms used throughout the agreement

4. Scope of Services: Detailed description of services to be provided

5. Term and Renewal: Duration of the agreement and renewal provisions

6. Fees and Payment Terms: Service fees, payment schedule, and related financial terms

7. Service Provider's Obligations: Key responsibilities and commitments of the service provider

8. Service Recipient's Obligations: Key responsibilities and commitments of the service recipient

9. Service Levels: Performance standards and metrics for service delivery

10. Intellectual Property Rights: Ownership and usage rights of IP created or used in service delivery

11. Confidentiality: Protection and handling of confidential information

12. Data Protection: Compliance with PDPA and data handling requirements

13. Liability and Indemnification: Limitation of liability and indemnification obligations

14. Termination: Grounds and process for agreement termination

15. Force Majeure: Provisions for unforeseen circumstances affecting performance

16. Governing Law and Jurisdiction: Application of Malaysian law and jurisdiction

17. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment

What sections are optional to include in a Service Agreement Between Two Companies?

1. Personnel and Key Staff: Used when specific individuals are critical to service delivery or when personnel requirements need to be specified

2. Equipment and Materials: Include when physical assets or materials are provided as part of the service

3. Insurance: Detailed insurance requirements when services involve significant risks or regulatory requirements

4. Change Control: Include for complex services where scope changes are likely to be needed

5. Business Continuity: Required for critical services where service interruption could significantly impact the recipient

6. Audit Rights: Include when compliance verification or performance monitoring is crucial

7. Anti-Corruption Compliance: Important for high-value contracts or when dealing with government-linked entities

8. Environmental Compliance: Include when services have environmental impacts or for ESG compliance

9. Subcontracting: Include when service provider may need to engage subcontractors

10. Exit Management: Important for complex services requiring transition planning

What schedules should be included in a Service Agreement Between Two Companies?

1. Schedule 1 - Service Specifications: Detailed technical specifications of services to be provided

2. Schedule 2 - Service Levels and KPIs: Detailed performance metrics, measurement methods, and reporting requirements

3. Schedule 3 - Fee Schedule: Detailed breakdown of fees, rates, and payment terms

4. Schedule 4 - Personnel: Details of key personnel, qualifications, and roles

5. Schedule 5 - Required Insurance: Specific insurance types and coverage amounts

6. Schedule 6 - Approved Subcontractors: List of pre-approved subcontractors if applicable

7. Schedule 7 - Service Locations: Locations where services will be provided or accessed

8. Schedule 8 - Data Processing Agreement: Specific terms for handling personal data under PDPA

9. Schedule 9 - Change Request Form: Template for requesting and documenting changes to services

10. Schedule 10 - Reports and Documentation: Templates and requirements for service reporting

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

Service Agreement

Cost

Free to use
Relevant legal definitions


























Clauses




































Relevant Industries

Information Technology

Professional Services

Manufacturing

Telecommunications

Healthcare

Financial Services

Construction

Logistics

Consulting

Facilities Management

Business Process Outsourcing

Education

Relevant Teams

Legal

Operations

Procurement

Finance

Compliance

Project Management

Service Delivery

Account Management

Risk Management

Commercial

Business Development

Relevant Roles

Chief Executive Officer

Chief Operating Officer

Legal Counsel

Contract Manager

Procurement Manager

Operations Director

Business Development Manager

Finance Director

Compliance Officer

Project Manager

Service Delivery Manager

Account Manager

Risk Manager

Commercial Director

General Manager

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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