Termination Of Business Relationship for Malaysia

Termination Of Business Relationship Template for Malaysia

This document serves as a formal agreement for the termination of business relationships between parties operating under Malaysian jurisdiction. It comprehensively addresses the dissolution of business arrangements while ensuring compliance with Malaysian commercial law, including the Contracts Act 1950 and Companies Act 2016. The agreement covers essential elements such as effective termination dates, settlement of outstanding obligations, handling of confidential information, asset distribution, and post-termination obligations, while providing mechanisms for dispute resolution under Malaysian law.

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What is a Termination Of Business Relationship?

The Termination of Business Relationship agreement is essential for companies operating in Malaysia who wish to formally end their commercial relationships in a legally compliant manner. This document becomes necessary when parties decide to cease their business arrangement due to various reasons such as strategic changes, completion of business objectives, or mutual agreement to end the relationship. It is drafted in accordance with Malaysian law, particularly the Contracts Act 1950 and related commercial legislation, ensuring that all aspects of the termination process are properly documented and legally enforceable. The agreement typically includes provisions for financial settlements, asset distribution, confidentiality obligations, and post-termination arrangements, providing a clear framework for both parties to move forward independently.

What sections should be included in a Termination Of Business Relationship?

1. Parties: Identification of all parties involved in the termination agreement

2. Background: Context of the original business relationship and reason for termination

3. Definitions: Definitions of key terms used throughout the agreement

4. Effective Date of Termination: Specific date when the business relationship will officially end

5. Mutual Release: Release of parties from obligations under the original agreement(s)

6. Outstanding Obligations: Details of any remaining obligations that must be fulfilled before or after termination

7. Payment Settlement: Terms for settling any outstanding payments or financial obligations

8. Return of Property: Requirements for returning any physical or intellectual property

9. Confidentiality: Ongoing obligations regarding confidential information

10. Non-Disparagement: Agreement not to make negative statements about the other party

11. Governing Law: Specification of Malaysian law as the governing law

12. Dispute Resolution: Process for resolving any disputes arising from the termination

13. Entire Agreement: Confirmation that this document represents the complete agreement regarding termination

What sections are optional to include in a Termination Of Business Relationship?

1. Transition Period: Terms governing any transition period, if a gradual termination is required

2. Employee Matters: Provisions regarding employees if the business relationship involved shared or transferred staff

3. Intellectual Property Rights: Detailed provisions for IP rights if significant IP was involved in the business relationship

4. Non-Compete Provisions: Restrictions on future competitive activities, if applicable

5. Customer/Client Transfer: Provisions for handling shared customers or clients

6. Warranties and Representations: Additional warranties specific to the termination context

7. Insurance and Indemnification: Specific provisions for ongoing insurance requirements or indemnification obligations

8. Public Announcements: Terms governing how the termination will be communicated to the public

What schedules should be included in a Termination Of Business Relationship?

1. Schedule A - Original Agreements: List and copies of all agreements being terminated

2. Schedule B - Outstanding Payments: Detailed list of all outstanding payments and financial settlements

3. Schedule C - Property Inventory: Inventory of all physical and intellectual property to be returned or transferred

4. Schedule D - Transition Plan: Detailed timeline and responsibilities for the transition period if applicable

5. Schedule E - Confidential Information: Specific list of confidential information that remains protected

6. Appendix 1 - Contact Details: Key contact persons for both parties during the termination process

7. Appendix 2 - Required Notices: Templates for any required notices or communications

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

Manufacturing

Technology

Retail

Financial Services

Professional Services

Construction

Healthcare

Education

Telecommunications

Energy

Logistics

Real Estate

Hospitality

Agriculture

Mining

Relevant Teams

Legal

Finance

Commercial

Operations

Business Development

Compliance

Risk Management

Corporate Affairs

Strategic Planning

Procurement

Relevant Roles

Chief Executive Officer

Managing Director

Chief Legal Officer

Legal Counsel

Contract Manager

Business Development Director

Chief Financial Officer

Commercial Director

Operations Director

Company Secretary

Risk Manager

Compliance Officer

Partnership Manager

Strategic Alliance Manager

Business Unit Head

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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