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Service Partner Agreement for Malaysia

Service Partner Agreement Template for Malaysia

A comprehensive legal agreement governed by Malaysian law that establishes and regulates the relationship between a company and its service partner. This document outlines the terms and conditions for service delivery, quality standards, payment terms, and mutual obligations while ensuring compliance with Malaysian regulations including the Contracts Act 1950 and relevant sector-specific legislation. It includes provisions for data protection, intellectual property rights, and dispute resolution mechanisms specific to the Malaysian legal context, while incorporating international best practices for service partner relationships.

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What is a Service Partner Agreement?

The Service Partner Agreement is a crucial document used to establish formal business relationships between companies and their service providers in Malaysia. It is particularly relevant when engaging external partners for ongoing service provision, whether for core business functions or supporting services. The agreement, governed by Malaysian law, includes comprehensive terms covering service scope, quality standards, compliance requirements, and commercial terms. This document type is essential for businesses operating in Malaysia who need to formalize their service partner relationships while ensuring compliance with local regulations such as the Contracts Act 1950, Employment Act 1955, and sector-specific requirements. The Service Partner Agreement helps define clear boundaries between partnership and employment relationships, protecting both parties while facilitating efficient business operations.

What sections should be included in a Service Partner Agreement?

1. Parties: Identifies and provides full details of all parties to the agreement

2. Background: Explains the context and purpose of the agreement, including the business relationship being established

3. Definitions: Defines key terms used throughout the agreement for clarity and consistency

4. Appointment and Scope: Details the formal appointment of the service partner and outlines the scope of services to be provided

5. Term and Renewal: Specifies the initial duration of the agreement and any renewal provisions

6. Service Partner Obligations: Lists the key responsibilities and obligations of the service partner

7. Company Obligations: Outlines the responsibilities and obligations of the company

8. Quality Standards: Defines the required service levels and quality standards to be maintained

9. Fees and Payment: Details the fee structure, payment terms, and invoicing procedures

10. Intellectual Property Rights: Addresses ownership and usage rights of intellectual property

11. Confidentiality: Defines confidential information and obligations regarding its protection

12. Data Protection: Ensures compliance with Malaysian data protection laws and establishes data handling procedures

13. Liability and Indemnification: Sets out liability limitations and indemnification obligations

14. Termination: Specifies termination grounds and procedures

15. Post-Termination Obligations: Outlines obligations that survive termination

16. General Provisions: Includes standard boilerplate clauses such as notices, amendments, and governing law

What sections are optional to include in a Service Partner Agreement?

1. Non-Competition: Include when protecting against competitive activities is necessary, specifying restricted activities and geographical limitations

2. Insurance: Include when specific insurance requirements need to be maintained by the service partner

3. Performance Metrics: Include when specific KPIs or performance measurements need to be tracked

4. Subcontracting: Include when the service partner may need to engage subcontractors

5. Force Majeure: Include when specific force majeure provisions beyond standard cases need to be addressed

6. Compliance with Laws: Include when specific regulatory compliance requirements need to be highlighted

7. Training Requirements: Include when specific training or certification requirements exist

8. Equipment and Materials: Include when specific provisions about equipment or materials provision are needed

9. Dispute Resolution: Include when specific dispute resolution procedures beyond standard court proceedings are required

10. Marketing and Branding: Include when use of brands and marketing materials needs to be regulated

What schedules should be included in a Service Partner Agreement?

1. Schedule 1 - Services Description: Detailed description of all services to be provided, including specific deliverables and technical requirements

2. Schedule 2 - Fee Schedule: Detailed breakdown of fees, charges, and payment terms including any variable components

3. Schedule 3 - Service Levels: Specific service level agreements (SLAs) and performance metrics

4. Schedule 4 - Key Personnel: List of key personnel from both parties responsible for managing the relationship

5. Schedule 5 - Technical Requirements: Technical specifications and requirements for service delivery

6. Schedule 6 - Compliance Requirements: Specific regulatory and compliance requirements applicable to the services

7. Schedule 7 - Operating Procedures: Detailed operational procedures and processes

8. Appendix A - Insurance Requirements: Detailed insurance requirements and minimum coverage levels

9. Appendix B - Form of Reports: Templates and formats for required reporting

10. Appendix C - Change Request Form: Standard form for requesting changes to services or terms

Authors

Alex Denne

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

Jurisdiction

Malaysia

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions






























Clauses







































Relevant Industries

Technology and Software

Professional Services

Manufacturing

Logistics and Supply Chain

Healthcare

Financial Services

Telecommunications

Retail and E-commerce

Construction and Engineering

Education and Training

Facilities Management

Business Process Outsourcing

Relevant Teams

Legal

Procurement

Operations

Commercial

Compliance

Risk Management

Finance

Vendor Management

Business Development

Supply Chain

Service Delivery

Partnership Management

Relevant Roles

Legal Counsel

Procurement Manager

Operations Director

Contract Manager

Business Development Manager

Compliance Officer

Risk Manager

Commercial Director

Supply Chain Manager

Vendor Management Officer

Chief Operating Officer

Partnership Manager

Service Delivery Manager

General Counsel

Head of Legal

Chief Financial Officer

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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