Partial Settlement Agreement for Malaysia

Partial Settlement Agreement Template for Malaysia

This document is a legally binding agreement under Malaysian law that enables parties to resolve specific aspects of their dispute while explicitly preserving their rights regarding unsettled matters. It includes detailed provisions for the settlement sum, payment terms, releases for settled claims, and clear reservations of rights for outstanding issues. The agreement complies with Malaysian contract law requirements and must be properly stamped under the Stamp Act 1949 to be admissible in Malaysian courts. It provides a structured framework for partial dispute resolution while maintaining legal positions on remaining contested matters.

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What is a Partial Settlement Agreement?

A Partial Settlement Agreement is utilized when parties seek to resolve certain aspects of their dispute while maintaining their rights to pursue other claims. This document type is particularly relevant in complex commercial disputes under Malaysian jurisdiction where settling all issues simultaneously may not be feasible or desirable. The agreement must comply with Malaysian contract law principles and includes essential elements such as consideration, clear terms for settled matters, explicit preservation of rights for unsettled claims, and proper execution requirements. It's commonly used in situations involving multiple claims, where parties can agree on certain issues but need more time, information, or negotiation for others. The document provides a clear framework for what is being settled, what remains outstanding, and how the parties will proceed with the unsettled matters.

What sections should be included in a Partial Settlement Agreement?

1. Parties: Identification and details of all parties to the settlement agreement

2. Background: Context of the dispute and circumstances leading to the partial settlement

3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement

4. Settled Claims: Detailed description of the claims being settled under this agreement

5. Settlement Sum and Payment Terms: Amount to be paid, payment schedule, and payment mechanisms

6. Release and Discharge: Terms of release for settled claims only

7. Reservation of Rights: Explicit preservation of rights regarding unsettled claims

8. Confidentiality: Obligations regarding confidentiality of the settlement terms

9. Entire Agreement: Confirmation that this document represents the complete agreement on settled matters

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

What sections are optional to include in a Partial Settlement Agreement?

1. Without Prejudice: Section stating the settlement is without prejudice to unsettled claims - used when parties want to explicitly preserve litigation positions

2. Tax Implications: Section addressing tax treatment of settlement payments - used when settlement involves significant sums or tax implications

3. Non-admission of Liability: Statement that settlement does not constitute admission - used when reputational concerns exist

4. Future Cooperation: Terms for parties' cooperation on unsettled matters - used when ongoing relationship is necessary

5. Severability: Provision for survival of terms if parts are invalid - used in complex settlements

6. Third Party Rights: Address rights of third parties - used when settlement affects others' rights

What schedules should be included in a Partial Settlement Agreement?

1. Schedule 1 - Settled Claims: Detailed list and description of claims being settled

2. Schedule 2 - Reserved Claims: Detailed list and description of claims explicitly reserved for future resolution

3. Schedule 3 - Payment Schedule: Detailed payment terms, installments, and conditions if applicable

4. Schedule 4 - Settlement Deed: Form of settlement deed to be executed upon completion of settlement terms

5. Appendix A - Related Documents: Copies of relevant documents referenced in the settlement

6. Appendix B - Communication Protocol: Procedures for communications regarding unsettled matters

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

Cost

Free to use
Relevant Industries

Construction

Manufacturing

Financial Services

Real Estate

Energy

Technology

Healthcare

Transportation

Retail

Professional Services

Relevant Teams

Legal

Finance

Compliance

Risk Management

Commercial Operations

Corporate Secretariat

Business Development

Project Management

Claims Management

Relevant Roles

Legal Counsel

Chief Legal Officer

Dispute Resolution Manager

Contract Manager

Risk Manager

Chief Financial Officer

Company Secretary

Claims Manager

Compliance Officer

Business Development Director

Project Manager

Commercial 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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