Agreement Between Principal And Agent for Malaysia

Agreement Between Principal And Agent Template for Malaysia

This document establishes a formal agency relationship under Malaysian law, defining the rights, obligations, and responsibilities between a principal and their appointed agent. It complies with the Malaysian Contracts Act 1950 and relevant commercial regulations, providing a comprehensive framework for the agent's authority to act on behalf of the principal. The agreement covers essential elements including scope of authority, territory, commission structure, performance requirements, and termination conditions, while incorporating necessary provisions for compliance with Malaysian business and agency laws.

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What is a Agreement Between Principal And Agent?

The Agreement Between Principal And Agent is a crucial legal document used in Malaysian business contexts when one party (the principal) wishes to authorize another party (the agent) to act on their behalf in business dealings. This document is essential for companies expanding their market reach through representatives, distributors, or sales agents in Malaysia. It ensures compliance with the Malaysian Contracts Act 1950 and other relevant legislation while protecting both parties' interests. The agreement typically includes detailed provisions on the agent's authority, territorial rights, commission structures, performance expectations, and termination conditions. It's particularly important in international trade relationships where Malaysian agents represent foreign principals, or when local businesses establish domestic agency networks.

What sections should be included in a Agreement Between Principal And Agent?

1. Parties: Identification and details of the Principal and Agent, including registration numbers and addresses

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

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

4. Appointment and Scope: Formal appointment of the agent and detailed scope of authority

5. Term and Termination: Duration of the agreement and circumstances for termination

6. Duties and Responsibilities of Agent: Comprehensive list of agent's obligations and responsibilities

7. Rights and Obligations of Principal: Principal's duties and commitments to the agent

8. Remuneration: Commission structure, payment terms, and calculation methods

9. Confidentiality: Obligations regarding confidential information and trade secrets

10. Non-Competition and Non-Solicitation: Restrictions on competitive activities during and after the agreement

11. Indemnification: Mutual indemnification provisions and liability limitations

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

13. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

What sections are optional to include in a Agreement Between Principal And Agent?

1. Intellectual Property Rights: Required when the agent will be using or creating intellectual property

2. Sub-Agents: Include when the agent is permitted to appoint sub-agents

3. Performance Targets: Necessary when specific performance metrics are part of the agreement

4. Marketing and Promotion: Include when agent has responsibilities for marketing principal's products/services

5. Insurance: Required when specific insurance coverage is mandatory for the agent

6. Data Protection: Include when agent will handle personal data subject to PDPA

7. Force Majeure: Optional clause for unforeseen circumstances preventing performance

8. Anti-Corruption Compliance: Include for agencies involving government contacts or high-value transactions

What schedules should be included in a Agreement Between Principal And Agent?

1. Schedule 1 - Territory: Detailed description of geographical area where agent is authorized to operate

2. Schedule 2 - Products/Services: Comprehensive list of products or services covered by the agency

3. Schedule 3 - Commission Structure: Detailed breakdown of commission rates, calculations, and examples

4. Schedule 4 - Performance Metrics: Specific KPIs and performance evaluation criteria

5. Schedule 5 - Approved Sub-Agents: List of pre-approved sub-agents if applicable

6. Appendix A - Standard Operating Procedures: Detailed procedures for agent's day-to-day operations

7. Appendix B - Reporting Templates: Standard forms and templates for required reports

8. Appendix C - Power of Attorney: Formal power of attorney document if required for specific actions

Authors

Alex Denne

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

Jurisdiction

Malaysia

Publisher

Genie AI

Document Type

Agency Agreement

Cost

Free to use
Relevant legal definitions
Relevant Industries

Manufacturing

Real Estate

Insurance

Import/Export

Retail

Technology

Financial Services

Telecommunications

Automotive

Consumer Goods

Agriculture

Tourism

Professional Services

Construction

Healthcare

Relevant Teams

Legal

Sales

Business Development

Commercial

Operations

Compliance

Finance

International Trade

Distribution

Contract Administration

Relevant Roles

Chief Executive Officer

Commercial Director

Sales Director

Business Development Manager

Legal Counsel

Compliance Officer

Contract Manager

Sales Manager

Distribution Manager

Agency Manager

Regional Manager

Territory Manager

Channel Partner Manager

Operations Director

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

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