The Agency Fee Agreement serves as a crucial legal instrument in Malaysian commercial relationships, establishing the terms under which an agent will represent and act on behalf of a principal in return for specified fees or commissions. This document becomes necessary when businesses seek to expand their reach through authorized representatives or when engaging third parties to perform specific services on their behalf. The agreement, governed by Malaysian law including the Contracts Act 1950 and relevant commercial regulations, typically includes detailed provisions on service scope, fee calculations, payment terms, performance standards, and termination rights. It's particularly important for protecting both parties' interests and ensuring clarity in their commercial relationship, while maintaining compliance with local legal requirements and business practices.
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1. Parties: Identifies and provides full details of the Principal and Agent, including registration numbers and registered addresses
2. Background: Explains the context of the agreement and the parties' intention to enter into an agency relationship
3. Definitions: Defines key terms used throughout the agreement for clarity and legal certainty
4. Appointment and Scope: Details the appointment of the agent and defines the scope of authority and services to be provided
5. Duration: Specifies the term of the agreement, including start date and any renewal provisions
6. Agent's Duties and Responsibilities: Outlines the specific obligations and responsibilities of the Agent
7. Principal's Duties and Responsibilities: Details the obligations and commitments of the Principal
8. Fees and Payment Terms: Specifies the fee structure, calculation method, payment schedule, and any conditions for payment
9. Performance Standards: Sets out the expected service levels and performance metrics
10. Confidentiality: Establishes obligations regarding confidential information handling
11. Termination: Details the circumstances and process for terminating the agreement
12. Governing Law and Jurisdiction: Specifies Malaysian law as governing law and sets jurisdiction for disputes
13. General Provisions: Contains standard boilerplate clauses including notices, entire agreement, and amendments
1. Non-Competition: Restricts the Agent from competing activities - include when protecting market position is crucial
2. Intellectual Property: Addresses IP rights and usage - include when the agency involves branded materials or creative works
3. Insurance: Specifies required insurance coverage - include for high-risk activities or regulatory requirements
4. Data Protection: Details data handling requirements - include when personal data processing is involved
5. Force Majeure: Addresses unforeseen circumstances - include when continuity of service is critical
6. Assignment and Subcontracting: Controls ability to transfer rights or delegate duties - include when restricting these actions is important
7. Compliance with Laws: Specifies regulatory compliance requirements - include for regulated industries
8. Dispute Resolution: Details alternative dispute resolution procedures - include when wanting to avoid court proceedings
1. Schedule 1 - Service Specifications: Detailed description of services to be provided by the Agent
2. Schedule 2 - Fee Schedule: Detailed breakdown of fees, commission rates, and calculation methods
3. Schedule 3 - Performance Metrics: Specific KPIs and performance measurement criteria
4. Schedule 4 - Territories: Geographic areas covered by the agency agreement
5. Schedule 5 - Approved Sub-agents: List of pre-approved sub-agents if applicable
6. Appendix A - Required Reports: Templates and specifications for required reporting
7. Appendix B - Communication Protocols: Procedures for routine communications and escalations
Relevant legal definitions
Clauses
Relevant Industries
Retail
Real Estate
Insurance
Financial Services
Manufacturing
Import/Export
Technology
Healthcare
Tourism
Professional Services
Consumer Goods
Telecommunications
Education
Advertising and Marketing
Relevant Teams
Legal
Commercial
Business Development
Sales
Finance
Compliance
Operations
Risk Management
Contract Administration
Corporate Secretarial
Relevant Roles
Commercial Director
Business Development Manager
Legal Counsel
Compliance Officer
Sales Director
Operations Manager
Contract Manager
Chief Financial Officer
Agency Relations Manager
Risk Manager
Partnership Manager
Regional Sales Manager
Managing Director
Company Secretary
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