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Standard Terms Of Contract for Malaysia

Standard Terms Of Contract Template for Malaysia

A comprehensive Standard Terms of Contract document governed by Malaysian law, designed to establish the fundamental terms and conditions for business relationships between a company and its customers or clients. This document incorporates essential provisions compliant with Malaysian legislation, including the Contracts Act 1950 and Consumer Protection Act 1999, while providing clear guidelines on service delivery, payment terms, liability limitations, and dispute resolution. It serves as a foundational agreement that can be customized for various business sectors while maintaining legal compliance with Malaysian regulatory requirements.

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What is a Standard Terms Of Contract?

Standard Terms of Contract are essential for businesses operating in Malaysia to establish clear, consistent, and legally compliant relationships with their customers or clients. This document serves as the primary agreement governing the provision of goods or services, incorporating mandatory requirements under Malaysian law, including the Contracts Act 1950, Consumer Protection Act 1999, and other relevant legislation. These standard terms are designed to be used across various business transactions, providing a framework for rights, obligations, and liabilities while remaining adaptable to specific business needs. The document should be reviewed periodically to ensure continued compliance with evolving Malaysian regulations and business requirements, particularly in areas such as consumer protection, data privacy, and electronic commerce.

What sections should be included in a Standard Terms Of Contract?

1. Parties: Identification of the business providing the goods/services and definition of customer/client categories

2. Background: Brief context of the business relationship and purpose of the standard terms

3. Definitions: Detailed definitions of terms used throughout the contract, including specific Malaysian legal terminology where relevant

4. Scope of Services/Goods: Clear description of products or services covered by these terms

5. Price and Payment: Pricing structure, payment terms, late payment consequences, and applicable taxes

6. Duration and Termination: Contract duration, renewal terms, and circumstances for termination

7. Obligations of the Provider: Provider's responsibilities, service standards, and delivery commitments

8. Customer Obligations: Customer's responsibilities and requirements for cooperation

9. Warranties and Representations: Standard warranties and quality guarantees, compliant with Malaysian consumer protection laws

10. Limitation of Liability: Limitations on liability and exclusions permitted under Malaysian law

11. Confidentiality: Protection of confidential information and trade secrets

12. Force Majeure: Events beyond reasonable control and their impact on obligations

13. Governing Law: Explicit statement of Malaysian law as governing law and jurisdiction

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

What sections are optional to include in a Standard Terms Of Contract?

1. Intellectual Property Rights: Required when the services or products involve IP rights, specifying ownership and usage rights

2. Data Protection: Required when personal data is collected or processed, ensuring PDPA 2010 compliance

3. Insurance: Required for high-risk services or products, specifying required insurance coverage

4. Compliance with Laws: Required for regulated industries or specific compliance requirements

5. Change Management: Required when services or products may need modification during the contract term

6. Service Levels: Required for service-based contracts with specific performance metrics

7. Dispute Resolution: Optional alternative dispute resolution procedures before court litigation

8. Assignment and Subcontracting: Required when there's a possibility of contract transfer or use of subcontractors

What schedules should be included in a Standard Terms Of Contract?

1. Schedule 1 - Pricing Schedule: Detailed pricing structure, rates, and payment terms

2. Schedule 2 - Service Specifications: Detailed description of services or products, including technical specifications

3. Schedule 3 - Service Levels: Specific performance metrics, measurement methods, and remedies

4. Schedule 4 - Data Processing Terms: Detailed data protection and privacy requirements if applicable

5. Appendix A - Contact Information: Key contact details for both parties

6. Appendix B - Required Forms: Standard forms used in the course of business relationship

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

Document Type

Use Agreement

Cost

Free to use
Relevant legal definitions

























Clauses






























Relevant Industries

Retail

E-commerce

Technology Services

Professional Services

Manufacturing

Distribution

Financial Services

Healthcare

Education

Telecommunications

Construction

Hospitality

Logistics

Software Development

Consulting

Relevant Teams

Legal

Commercial

Sales

Operations

Compliance

Risk Management

Business Development

Customer Service

Procurement

Contract Administration

Corporate Affairs

Account Management

Relevant Roles

Legal Counsel

Contract Manager

Commercial Director

Business Development Manager

Sales Manager

Operations Manager

Compliance Officer

Risk Manager

General Manager

CEO

Managing Director

Customer Service Manager

Procurement Manager

Project Manager

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

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