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Termination And Mutual Release Agreement for Malaysia

Termination And Mutual Release Agreement Template for Malaysia

This document is a comprehensive Termination and Mutual Release Agreement governed by Malaysian law, designed to formally conclude contractual relationships between parties while providing mutual releases from future claims. It incorporates essential elements required under Malaysian contract law, including the Contracts Act 1950 and other relevant statutes, and provides a framework for documenting the termination terms, settlement provisions, and mutual releases. The agreement addresses key aspects such as final payments, return of property, confidentiality obligations, and surviving provisions, while ensuring compliance with Malaysian legal requirements for contract termination and dispute resolution.

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Termination And Mutual Release Agreement

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What is a Termination And Mutual Release Agreement?

The Termination And Mutual Release Agreement is a crucial legal document used in Malaysian business and employment contexts when parties wish to formally end their contractual relationship and release each other from future claims or liabilities. It is particularly relevant when concluding commercial agreements, employment relationships, or business partnerships where a clean break is desired. The document must comply with Malaysian legal requirements, including the Contracts Act 1950, Employment Act 1955 (where applicable), and relevant case law. It typically includes provisions for final settlements, confidentiality obligations, return of property, and mutual releases. This type of agreement is essential for risk management and providing legal certainty to all parties involved in the termination.

What sections should be included in a Termination And Mutual Release Agreement?

1. Parties: Identification of all parties to the agreement with their full legal names and addresses

2. Background: Recitals explaining the existing relationship between the parties, reference to original agreement(s), and the parties' desire to terminate the relationship

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

4. Termination: Clear statement of the termination of the original agreement(s) and the effective date

5. Settlement Terms: Details of any payments, transfers, or other consideration being exchanged as part of the termination

6. Mutual Release: Comprehensive mutual release of claims between the parties

7. Confidentiality: Ongoing obligations regarding confidential information and trade secrets

8. Return of Property: Requirements for returning any physical or digital property belonging to either party

9. Representations and Warranties: Basic representations about authority to enter agreement and understanding of terms

10. Governing Law and Jurisdiction: Specification of Malaysian law as governing law and jurisdiction for disputes

11. General Provisions: Standard boilerplate clauses including entire agreement, amendments, and severability

What sections are optional to include in a Termination And Mutual Release Agreement?

1. Surviving Obligations: Used when certain obligations from the original agreement need to survive termination

2. Non-Disparagement: Include when parties wish to prevent negative statements about each other post-termination

3. Intellectual Property Rights: Required when IP ownership or licenses need to be addressed post-termination

4. Tax Provisions: Include when there are significant tax implications from the termination payments

5. Future Cooperation: Used when parties need to cooperate on specific matters after termination

6. Non-Competition/Non-Solicitation: Include when restrictions on future business activities are required

7. Insurance and Indemnification: Required when ongoing insurance obligations or specific indemnities are needed

8. Transition Services: Include when one party needs to provide services during a transition period

What schedules should be included in a Termination And Mutual Release Agreement?

1. Schedule of Payments: Detailed breakdown of any termination or settlement payments

2. Schedule of Released Claims: Specific list of claims being released by the parties

3. Schedule of Returned Property: Inventory of physical and digital assets to be returned

4. Schedule of Original Agreements: List of all agreements being terminated

5. Schedule of Surviving Provisions: List of provisions from original agreements that will survive termination

6. Schedule of Transition Services: Details of any transition services to be provided post-termination

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

Cost

Free to use
Relevant legal definitions





















Clauses





























Relevant Industries

Technology

Manufacturing

Financial Services

Professional Services

Retail

Healthcare

Construction

Education

Telecommunications

Energy

Real Estate

Transportation and Logistics

Media and Entertainment

Agriculture

Mining and Resources

Relevant Teams

Legal

Human Resources

Procurement

Commercial

Operations

Risk Management

Compliance

Executive Leadership

Business Development

Contract Administration

Relevant Roles

Chief Executive Officer

Chief Legal Officer

Legal Director

Human Resources Director

Contract Manager

Procurement Manager

Business Development Manager

Commercial Director

Operations Manager

Project Manager

Risk Manager

Compliance Officer

General Counsel

HR Manager

Legal Counsel

Company Secretary

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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