The Pre Partnership Agreement serves as a critical preliminary document in Malaysian business relationships, providing a structured framework for parties to explore and negotiate potential partnership arrangements before committing to a full partnership. This document is essential when two or more parties wish to formalize their intentions to investigate a business opportunity together while protecting their interests during the exploratory phase. Used across various industries in Malaysia, it typically includes provisions for confidentiality, due diligence processes, cost allocation, and exclusivity arrangements. The agreement is particularly important in the Malaysian business context, where it helps ensure compliance with local partnership laws while providing a clear pathway to formal partnership formation. It's commonly used when parties need time to evaluate the viability of their proposed venture, conduct proper due diligence, or negotiate detailed terms of their future partnership.
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1. Parties: Identification and details of all potential partners entering into the pre-partnership arrangement
2. Background: Context of the proposed partnership, including the business opportunity and reasons for entering into the pre-partnership arrangement
3. Definitions: Key terms used throughout the agreement and their specific meanings
4. Purpose and Scope: Clear statement of the agreement's purpose and the scope of the proposed partnership venture
5. Duration: Timeline for the pre-partnership phase and conditions for extension or early termination
6. Confidentiality: Obligations regarding confidential information shared during the pre-partnership phase
7. Due Diligence: Framework for investigating and evaluating the proposed partnership opportunity
8. Preliminary Obligations: Responsibilities of each party during the pre-partnership phase
9. Costs and Expenses: Allocation of costs incurred during the pre-partnership phase
10. Exclusivity: Restrictions on pursuing similar arrangements with other parties
11. Good Faith: Commitment to negotiate and work towards the partnership in good faith
12. Termination: Circumstances and process for ending the pre-partnership arrangement
13. Governing Law: Specification of Malaysian law as the governing law and jurisdiction
1. Intellectual Property: Provisions for handling existing and created IP during the pre-partnership phase - include when any party brings significant IP to the arrangement
2. Regulatory Compliance: Specific compliance requirements for regulated industries - include when the proposed business requires special licenses or permits
3. Non-Competition: Restrictions on competitive activities - include when there are specific competitive concerns
4. Resource Commitment: Specific commitments of resources during the pre-partnership phase - include when significant resources are being committed
5. Dispute Resolution: Detailed dispute resolution procedures - include when parties prefer specific resolution mechanisms
6. Third Party Rights: Provisions regarding the rights of third parties - include when external stakeholders are involved
7. Insurance: Requirements for insurance coverage during the pre-partnership phase - include when significant risks exist
1. Business Plan: Preliminary business plan and objectives for the proposed partnership
2. Due Diligence Requirements: Detailed list of due diligence items and requirements
3. Timeline: Detailed timeline for the pre-partnership phase and key milestones
4. Contributed Assets: List of assets or resources to be contributed by each party
5. Confidential Information: Specific details of what constitutes confidential information
6. Required Approvals: List of regulatory or third-party approvals needed for the partnership
7. Cost Allocation: Detailed breakdown of cost sharing during the pre-partnership phase
Relevant legal definitions
Agreement
Business Day
Business Plan
Commencement Date
Confidential Information
Due Diligence
Due Diligence Period
Effective Date
Excluded Information
Identity Card
Intellectual Property Rights
Malaysian Ringgit
Material Adverse Change
Parties
Partnership Business
Pre Partnership Period
Professional Advisers
Proposed Partnership
Representatives
Restricted Period
Target Date
Territory
Transaction Documents
Permitted Purpose
Preliminary Costs
Confidentiality Obligations
Business Assets
Completion Date
Designated Account
Encumbrance
Force Majeure Event
Good Faith
Governing Law
Initial Capital
Negotiation Period
Business Day
Business Plan
Commencement Date
Confidential Information
Due Diligence
Due Diligence Period
Effective Date
Excluded Information
Identity Card
Intellectual Property Rights
Malaysian Ringgit
Material Adverse Change
Parties
Partnership Business
Pre Partnership Period
Professional Advisers
Proposed Partnership
Representatives
Restricted Period
Target Date
Territory
Transaction Documents
Permitted Purpose
Preliminary Costs
Confidentiality Obligations
Business Assets
Completion Date
Designated Account
Encumbrance
Force Majeure Event
Good Faith
Governing Law
Initial Capital
Negotiation Period
Clauses
Interpretation
Definitions
Duration
Confidentiality
Non-Disclosure
Due Diligence
Exclusivity
Good Faith
Preliminary Obligations
Cost Sharing
Intellectual Property
Non-Competition
Non-Solicitation
Termination
Force Majeure
Assignment
Notices
Governing Law
Dispute Resolution
Third Party Rights
Entire Agreement
Amendments
Severability
Waiver
Partnership Formation Conditions
Information Exchange
Resource Commitment
Regulatory Compliance
Representations and Warranties
Liability Limitations
Definitions
Duration
Confidentiality
Non-Disclosure
Due Diligence
Exclusivity
Good Faith
Preliminary Obligations
Cost Sharing
Intellectual Property
Non-Competition
Non-Solicitation
Termination
Force Majeure
Assignment
Notices
Governing Law
Dispute Resolution
Third Party Rights
Entire Agreement
Amendments
Severability
Waiver
Partnership Formation Conditions
Information Exchange
Resource Commitment
Regulatory Compliance
Representations and Warranties
Liability Limitations
Relevant Industries
Professional Services
Retail
Manufacturing
Technology
Real Estate
Food and Beverage
Healthcare
Education
Construction
Agriculture
E-commerce
Consulting
Financial Services
Tourism and Hospitality
Relevant Teams
Legal
Finance
Business Development
Corporate Strategy
Risk Management
Compliance
Operations
Executive Leadership
Corporate Development
Investment
Relevant Roles
Business Owner
Managing Director
Chief Executive Officer
Chief Financial Officer
Legal Counsel
Business Development Manager
Partnership Manager
Investment Director
Company Secretary
Risk Manager
Compliance Officer
Operations Director
Strategic Planning Manager
Corporate Development Officer
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