Sourcing Agent Agreement for Malaysia

Sourcing Agent Agreement Template for Malaysia

A comprehensive legal agreement governed by Malaysian law that establishes and regulates the relationship between a principal company and a sourcing agent. The agreement defines the agent's authority to identify, negotiate with, and manage suppliers on behalf of the principal, typically in specific geographical territories. It includes detailed provisions on commission structures, performance expectations, compliance requirements, and quality control standards, while incorporating relevant Malaysian legal requirements including those under the Contracts Act 1950 and other applicable commercial regulations.

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What is a Sourcing Agent Agreement?

The Sourcing Agent Agreement is essential for companies seeking to establish efficient procurement channels in Malaysia and surrounding regions. This document is typically used when a company (the Principal) requires local expertise and representation to source products, materials, or services from suppliers in specific territories. The agreement, governed by Malaysian law, comprehensively outlines the agent's authority, duties, and compensation structure, while ensuring compliance with local regulations including the Contracts Act 1950, Malaysian Anti-Corruption Commission Act 2009, and relevant trade laws. It's particularly valuable for international companies entering the Malaysian market or local companies expanding their sourcing operations, providing a clear framework for the agent's role in supplier identification, negotiation, quality control, and ongoing relationship management.

What sections should be included in a Sourcing Agent Agreement?

1. Parties: Identification of the Principal and the Sourcing Agent, including full legal names and registration details

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

3. Definitions: Key terms used throughout the agreement

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

5. Agent's Authority: Extent and limitations of agent's authority to act on behalf of principal

6. Agent's Duties and Responsibilities: Detailed obligations including sourcing, negotiation, quality control, and reporting

7. Principal's Obligations: Principal's responsibilities including information provision and payment obligations

8. Compensation: Fee structure, commission rates, and payment terms

9. Compliance: Obligations to comply with relevant laws, regulations, and ethical standards

10. Confidentiality: Protection of confidential information and trade secrets

11. Term and Termination: Duration of agreement and termination provisions

12. Post-Termination Obligations: Obligations surviving termination and handover requirements

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

What sections are optional to include in a Sourcing Agent Agreement?

1. Exclusivity: Used when the agent is granted exclusive rights in specific territories or for specific products

2. Performance Targets: Include when specific KPIs or minimum performance requirements are needed

3. Intellectual Property: Required when the agent will be handling branded products or creating new IP

4. Insurance: Detailed insurance requirements when dealing with high-value goods or specific risks

5. Anti-Corruption Compliance: Enhanced compliance provisions for high-risk territories or government contracts

6. Force Majeure: Detailed force majeure provisions for agreements with critical supply chain implications

7. Data Protection: Required when personal data processing is involved in the sourcing activities

What schedules should be included in a Sourcing Agent Agreement?

1. Schedule 1 - Services Description: Detailed description of sourcing services to be provided

2. Schedule 2 - Territory: Definition of geographical areas covered by the agreement

3. Schedule 3 - Commission Structure: Detailed breakdown of commission rates and calculation methods

4. Schedule 4 - Approved Suppliers: List of pre-approved suppliers if applicable

5. Schedule 5 - Reporting Requirements: Templates and timing for required reports

6. Schedule 6 - Quality Standards: Specific quality requirements and inspection procedures

7. Appendix A - Power of Attorney: If required, formal authorization for agent to act on principal's behalf

8. Appendix B - Code of Conduct: Ethical business practices and compliance requirements

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
Clauses
Relevant Industries

Manufacturing

Retail

Fashion and Apparel

Electronics

Automotive

Consumer Goods

Industrial Equipment

Textiles

Food and Beverage

Construction Materials

Medical Supplies

Furniture and Home Goods

Relevant Teams

Procurement

Supply Chain

Operations

Legal

Compliance

Finance

International Trade

Vendor Management

Commercial

Risk Management

Relevant Roles

Procurement Manager

Supply Chain Director

Sourcing Specialist

Chief Procurement Officer

Operations Manager

Commercial Director

Supply Chain Manager

International Trade Manager

Purchasing Manager

Vendor Relations Manager

Global Sourcing Manager

Contract Manager

Legal Counsel

Chief Operating Officer

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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