Termination Of Sale Agreement for Malaysia

Termination Of Sale Agreement Template for Malaysia

A comprehensive legal document governed by Malaysian law, specifically the Contracts Act 1950 and Sale of Goods Act 1957, that formally terminates an existing sale agreement between parties. This document outlines the terms and conditions for ending the sale relationship, including settlement of outstanding obligations, return of any goods or property, mutual releases, and the preservation of any surviving obligations. It provides legal certainty for both parties by clearly defining the termination process and addressing all financial and operational aspects of the separation.

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What is a Termination Of Sale Agreement?

The Termination of Sale Agreement is a crucial legal instrument used in Malaysian business transactions when parties mutually agree or are required to end their existing sale arrangement. This document is essential when parties need to formally document the cessation of their sales relationship, whether due to mutual agreement, breach of contract, or changed circumstances. It must comply with Malaysian legal requirements, particularly the Contracts Act 1950 and Sale of Goods Act 1957, and typically includes provisions for financial settlements, return of property, mutual releases, and ongoing obligations. The agreement provides legal protection for all parties by clearly documenting the termination terms and ensuring all aspects of the separation are properly addressed.

What sections should be included in a Termination Of Sale Agreement?

1. Parties: Identification of all parties to the termination agreement, including their full legal names, registration numbers (if companies), and addresses

2. Background: Recitals explaining the original sale agreement, reason for termination, and current situation

3. Definitions: Definitions of key terms used in the agreement, including reference to the original sale agreement

4. Termination: Clear statement of termination of the original agreement and the effective date

5. Settlement of Outstanding Obligations: Details of any outstanding payments, refunds, or obligations to be settled between the parties

6. Return of Goods or Property: Provisions regarding the return or disposal of any goods, property, or documents related to the original sale

7. Mutual Release: Release of claims and obligations between parties relating to the original agreement

8. Confidentiality: Obligations regarding confidential information and its continued protection

9. Governing Law: Confirmation that Malaysian law governs the termination agreement

10. Execution: Signature blocks and execution formalities

What sections are optional to include in a Termination Of Sale Agreement?

1. Surviving Provisions: Identifies which provisions from the original agreement survive termination, used when certain obligations need to continue

2. Third Party Rights: Addresses impact on third party rights, used when the original agreement involved third party beneficiaries

3. Tax Implications: Addresses tax consequences of termination, used when significant tax implications exist

4. Intellectual Property Rights: Provisions regarding any IP rights affected by termination, used when IP was involved in the original sale

5. Dispute Resolution: Specific dispute resolution mechanisms, used when parties want to specify how future disputes will be handled

6. Non-Competition: Continued effectiveness of any non-compete provisions, used when original agreement contained such restrictions

What schedules should be included in a Termination Of Sale Agreement?

1. Schedule 1 - Original Sale Agreement: Copy or details of the original sale agreement being terminated

2. Schedule 2 - Settlement Statement: Detailed breakdown of all financial settlements, payments, or refunds

3. Schedule 3 - Inventory of Items: List of any goods, property, or documents to be returned or transferred

4. Schedule 4 - Release Form: Form of mutual release to be executed by the parties

5. Schedule 5 - Handover Protocol: Procedure and timeline for any physical handover of goods or property

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

Retail

Real Estate

Manufacturing

Technology

Consumer Goods

Automotive

Construction

Agriculture

E-commerce

Professional Services

Industrial Equipment

Energy

Telecommunications

Relevant Teams

Legal

Finance

Sales

Procurement

Operations

Compliance

Risk Management

Commercial

Business Development

Corporate Secretarial

Relevant Roles

Legal Counsel

Contract Manager

Commercial Director

Chief Financial Officer

Sales Manager

Procurement Manager

Business Development Manager

Operations Director

Company Secretary

Risk Manager

Compliance Officer

General Manager

Managing 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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