Retainer Agreement for Malaysia

Retainer Agreement Template for Malaysia

A Retainer Agreement under Malaysian law is a formal contract that establishes an ongoing professional relationship between a service provider and a client. The agreement details the terms under which professional services will be provided on a regular basis in exchange for a fixed periodic fee. It comprehensively covers the scope of services, payment terms, obligations of both parties, and operational procedures, all while ensuring compliance with Malaysian contractual law, particularly the Contracts Act 1950 and relevant professional regulations. This document is crucial for establishing clear expectations, service standards, and financial arrangements in professional service relationships.

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What is a Retainer Agreement?

The Retainer Agreement is essential for businesses and professionals in Malaysia seeking to establish long-term professional service relationships. This document is typically used when a client requires regular access to professional services and wishes to secure priority attention from the service provider. The agreement provides certainty of service availability while offering the service provider a stable income stream. Under Malaysian law, particularly the Contracts Act 1950, this agreement must clearly define the scope of services, payment terms, and mutual obligations. The document is particularly valuable for professional service providers such as lawyers, consultants, and advisors who offer ongoing services to their clients. The Retainer Agreement includes critical elements such as service levels, reporting requirements, confidentiality provisions, and termination procedures, all structured to comply with Malaysian legal requirements and professional standards.

What sections should be included in a Retainer Agreement?

1. Parties: Identification and details of the service provider and the client

2. Background: Context of the agreement and brief description of the parties' intention to enter into a retainer arrangement

3. Definitions: Key terms used throughout the agreement defined for clarity and consistency

4. Scope of Services: Detailed description of the services to be provided under the retainer arrangement

5. Term and Renewal: Duration of the retainer agreement and conditions for renewal

6. Fees and Payment Terms: Monthly retainer amount, payment schedule, and billing procedures

7. Obligations of the Service Provider: Duties, responsibilities, and service standards of the provider

8. Client's Obligations: Responsibilities of the client, including provision of information and cooperation

9. Confidentiality: Obligations regarding confidential information protection and handling

10. Termination: Circumstances and procedures for ending the agreement

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

12. General Provisions: Standard clauses including notices, entire agreement, and amendments

What sections are optional to include in a Retainer Agreement?

1. Intellectual Property Rights: Section dealing with ownership and usage rights of any IP created during the service provision

2. Non-Competition: Restrictions on competitive activities, if applicable to the professional relationship

3. Service Levels: Specific performance metrics and standards, particularly relevant for technical or specialized services

4. Key Personnel: Identification of specific team members assigned to the client, useful for professional services firms

5. Reporting Requirements: Detailed reporting obligations and schedules, important for complex service arrangements

6. Insurance: Professional indemnity and other insurance requirements

7. Force Majeure: Provisions for unforeseen circumstances preventing performance

8. Data Protection: Specific provisions regarding handling of personal data and compliance with privacy laws

What schedules should be included in a Retainer Agreement?

1. Schedule 1 - Scope of Services: Detailed breakdown of services covered under the retainer

2. Schedule 2 - Fee Schedule: Detailed fee structure, including hourly rates for additional services beyond retainer scope

3. Schedule 3 - Service Levels: Specific performance metrics and response times

4. Schedule 4 - Key Personnel: Details of team members assigned to the client

5. Schedule 5 - Reports and Deliverables: Format and frequency of reports and other deliverables

6. Appendix A - Communication Protocol: Procedures for routine communications and escalations

7. Appendix B - Additional Services Rate Card: Pricing for services not covered under the standard retainer

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

Agreement Contract

Cost

Free to use
Clauses
Relevant Industries

Legal Services

Professional Services

Management Consulting

Information Technology

Financial Services

Healthcare

Marketing and Advertising

Public Relations

Accounting and Audit

Engineering

Business Advisory

Human Resources

Education and Training

Relevant Teams

Legal

Finance

Procurement

Operations

Human Resources

Compliance

Business Development

Contract Management

Project Management

Professional Services

Administration

Executive Management

Relevant Roles

Chief Executive Officer

Managing Director

Legal Counsel

Chief Financial Officer

Operations Manager

Procurement Manager

Contract Manager

Business Development Manager

HR Director

Professional Services Manager

Consultant

Company Secretary

Compliance Officer

Project Manager

Department Head

Managing Partner

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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