Non Exclusive Agency Agreement for Malaysia

Non Exclusive Agency Agreement Template for Malaysia

A Malaysian law-governed Non-Exclusive Agency Agreement is a legal document that establishes a commercial relationship between a principal and an agent, where the agent is authorized to represent the principal's interests without exclusivity. This agreement, compliant with Malaysian commercial law including the Contracts Act 1950, defines the scope of the agent's authority, commission structure, and operational parameters while explicitly preserving the principal's right to appoint other agents in the same territory or market segment. The document includes comprehensive provisions for performance standards, payment terms, compliance requirements, and termination conditions, all structured within the Malaysian legal framework.

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What is a Non Exclusive Agency Agreement?

The Non-Exclusive Agency Agreement is essential for businesses operating in Malaysia who wish to appoint representatives while maintaining flexibility in their distribution or representation strategy. This document is particularly relevant when a company wants to test new markets, maintain competitive dynamics among multiple agents, or avoid being dependent on a single representative. The agreement, governed by Malaysian law, typically includes detailed provisions on territory rights, commission structures, performance expectations, and compliance requirements. It's commonly used across various industries from retail to professional services, and can be adapted for both domestic and international commercial relationships. The non-exclusive nature allows principals to maintain multiple channels to market while providing agents with clear parameters for their operations.

What sections should be included in a Non Exclusive Agency Agreement?

1. Parties: Identification of the Principal and Agent with full legal names and addresses

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

3. Definitions: Key terms used throughout the agreement

4. Appointment and Scope: Terms of agent's appointment, explicitly stating non-exclusive nature, and detailed scope of authority

5. Territory: Geographical area or market segment where agent is authorized to act

6. Agent's Rights and Obligations: Detailed responsibilities, performance standards, and reporting requirements

7. Principal's Rights and Obligations: Support, information, and resources to be provided by the principal

8. Commission and Payment Terms: Commission structure, calculation method, payment schedule, and expenses policy

9. Term and Termination: Duration of agreement and grounds for termination

10. Confidentiality: Protection of confidential information and trade secrets

11. Intellectual Property: Usage rights and protection of trademarks, logos, and other IP

12. Compliance with Laws: Obligation to comply with applicable laws and regulations

13. Governing Law and Jurisdiction: Malaysian law as governing law and jurisdiction for disputes

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

What sections are optional to include in a Non Exclusive Agency Agreement?

1. Performance Targets: Specific sales or performance targets, used when measuring agent's performance is crucial

2. Training and Support: Details of training provided by principal, included when significant training is part of the relationship

3. Insurance: Insurance requirements for the agent, needed for high-risk activities or regulated industries

4. Data Protection: Detailed data handling requirements, necessary when personal data processing is involved

5. Non-Compete: Post-termination restrictions, used when protecting market position is crucial

6. Marketing and Promotion: Marketing obligations and standards, included when agent has significant marketing responsibilities

7. Sub-Agents: Rights and restrictions regarding appointment of sub-agents, used when sub-agents might be needed

8. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in long-term agreements

What schedules should be included in a Non Exclusive Agency Agreement?

1. Commission Structure: Detailed breakdown of commission rates, tiers, and calculation methods

2. Products or Services: List of products or services covered by the agency agreement

3. Territory Details: Detailed description of geographical boundaries or market segments

4. Reporting Templates: Standard forms for regular reporting requirements

5. Brand Guidelines: Guidelines for use of principal's branding and marketing materials

6. Service Level Agreement: Detailed performance metrics and standards

7. Compliance Procedures: Specific compliance requirements and procedures

8. Contact Details: Key contact persons and communication protocols

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 Industries

Retail

Manufacturing

Real Estate

Insurance

Technology

Export/Import

Consumer Goods

Professional Services

Healthcare

Tourism

Financial Services

Education

Telecommunications

Relevant Teams

Legal

Sales

Business Development

Compliance

Operations

Commercial

Contract Management

Distribution

Partner Relations

Executive Leadership

Relevant Roles

Commercial Director

Sales Manager

Business Development Manager

Legal Counsel

Compliance Officer

Operations Manager

Channel Manager

Distribution Manager

Contract Administrator

Chief Commercial Officer

Regional Sales Director

Partnership Manager

Agency Relations Manager

General Counsel

Managing Director

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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