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Service Engagement Agreement Template for Malaysia

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Key Requirements PROMPT example:

Service Engagement Agreement

"I need a Service Engagement Agreement under Malaysian law for IT consulting services, where my company will provide cybersecurity assessment and monitoring services to a manufacturing client, with services commencing March 1, 2025."

Document background
The Service Engagement Agreement is a fundamental commercial document used to formalize service arrangements between businesses or professionals in Malaysia. This agreement type is essential when engaging external service providers, consultants, or professional service firms, establishing clear parameters for the service relationship. The document addresses key aspects required under Malaysian law, including service scope, payment terms, performance standards, and liability provisions. A Service Engagement Agreement is particularly crucial in protecting both parties' interests while ensuring compliance with Malaysian regulatory requirements, including the Contracts Act 1950, Service Tax Act 2018, and industry-specific regulations. It serves as a comprehensive framework for managing service relationships, risk allocation, and dispute resolution in the Malaysian business context.
Suggested Sections

1. Parties: Identification and details of the service provider and client

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

3. Definitions: Definitions of key terms used throughout the agreement

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

5. Term and Commencement: Duration of the agreement and start date

6. Fees and Payment: Payment terms, rates, invoicing, and payment methods

7. Obligations of Service Provider: Key responsibilities and service standards

8. Obligations of Client: Client's responsibilities and commitments

9. Representations and Warranties: Standard warranties about capacity and ability to perform

10. Confidentiality: Protection of confidential information

11. Termination: Grounds and process for ending the agreement

12. Limitation of Liability: Caps on liability and exclusions

13. Force Majeure: Provisions for unforeseen circumstances

14. Notices: How formal communications should be made

15. Governing Law and Jurisdiction: Confirmation of Malaysian law and jurisdiction

16. General Provisions: Standard boilerplate clauses including assignment, variation, and severability

Optional Sections

1. Intellectual Property Rights: Required when services involve creation of new IP or use of existing IP

2. Data Protection: Required when personal data processing is involved, ensuring PDPA compliance

3. Non-Competition: Optional restrictions on service provider's competitive activities

4. Insurance: Required for high-risk services or when professional indemnity is needed

5. Service Levels: Required when specific performance metrics need to be maintained

6. Audit Rights: Important for regulated industries or when compliance verification is needed

7. Staff and Subcontracting: Required when service provider may need to use subcontractors or specific staff

8. Exit Assistance: Important for complex services requiring transition upon termination

9. Foreign Law Compliance: Required when services have international elements

Suggested Schedules

1. Schedule 1 - Service Description: Detailed specification of services to be provided

2. Schedule 2 - Fee Schedule: Detailed breakdown of fees, rates, and payment terms

3. Schedule 3 - Service Levels: Performance metrics and measurement methods

4. Schedule 4 - Key Personnel: Details of key staff assigned to provide the services

5. Schedule 5 - Client Materials and Requirements: List of items/access client must provide

6. Schedule 6 - Change Control Procedure: Process for making changes to services or terms

7. Appendix A - Form of Report: Template for required service reports

8. Appendix B - Security Requirements: Security protocols and requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
































Clauses































Relevant Industries

Information Technology

Professional Services

Consulting

Engineering

Financial Services

Healthcare

Education

Manufacturing

Construction

Telecommunications

Business Process Outsourcing

Marketing and Advertising

Research and Development

Facilities Management

Environmental Services

Relevant Teams

Legal

Procurement

Finance

Operations

Compliance

Risk Management

Commercial

Business Development

Project Management

Senior Management

Relevant Roles

Legal Counsel

Contract Manager

Procurement Manager

Operations Director

Chief Financial Officer

Project Manager

Business Development Manager

Risk Manager

Compliance Officer

Commercial Director

Managing Director

Chief Executive Officer

Head of Operations

General Manager

Department Head

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,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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