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Agreement For Supply Of Goods On Credit for Malaysia

Agreement For Supply Of Goods On Credit Template for Malaysia

A comprehensive commercial agreement governed by Malaysian law that establishes the terms and conditions for the supply of goods on credit between a supplier and purchaser. This document outlines the credit arrangements, payment terms, security provisions, and supply obligations while incorporating relevant provisions from Malaysian contract law, including the Contracts Act 1950 and Sale of Goods Act 1957. It includes detailed provisions for credit limits, payment schedules, default remedies, and security arrangements, making it suitable for ongoing business relationships where regular supply of goods occurs with deferred payment terms.

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What is a Agreement For Supply Of Goods On Credit?

The Agreement For Supply Of Goods On Credit is designed for commercial transactions in Malaysia where a supplier agrees to provide goods to a purchaser with deferred payment terms. This agreement is particularly useful for businesses seeking to establish long-term supply relationships while managing credit risk and cash flow. It combines elements of both supply and credit arrangements, incorporating provisions required under Malaysian law, including compliance with the Contracts Act 1950, Sale of Goods Act 1957, and Financial Services Act 2013. The document is structured to protect both parties' interests by clearly defining credit terms, security arrangements, and remedies for default, while maintaining flexibility for ongoing commercial relationships.

What sections should be included in a Agreement For Supply Of Goods On Credit?

1. Parties: Identification of supplier and purchaser with full legal names and registration details

2. Background: Context of the agreement, including business relationship and purpose

3. Definitions and Interpretation: Defined terms, interpretation rules, and currency definitions

4. Supply Obligations: Core obligations regarding supply of goods, ordering process, and delivery terms

5. Credit Terms: Credit limit, payment terms, interest rates, and credit period

6. Price and Payment: Pricing mechanism, invoicing requirements, and payment procedures

7. Quality and Specifications: Quality standards, specifications of goods, and compliance requirements

8. Delivery and Risk: Delivery terms, transfer of risk, and acceptance procedures

9. Title and Security: Retention of title provisions and security arrangements for credit

10. Warranties and Representations: Standard warranties regarding goods and capacity to contract

11. Default and Consequences: Events of default, remedies, and enforcement rights

12. Term and Termination: Duration, renewal terms, and termination rights

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

What sections are optional to include in a Agreement For Supply Of Goods On Credit?

1. Parent Company Guarantee: Required when parent company support is needed for credit security

2. Insurance: Detailed insurance requirements if specific coverage is needed for high-value goods

3. Intellectual Property: Required when supplied goods involve patents, trademarks or other IP rights

4. Confidentiality: Detailed confidentiality provisions if sensitive information is shared

5. Force Majeure: Detailed force majeure provisions for industries susceptible to supply chain disruption

6. Export/Import Compliance: Required for international supply arrangements

7. Anti-Corruption: Required for high-value contracts or public sector supplies

8. Data Protection: Required when personal data is processed in the supply chain

What schedules should be included in a Agreement For Supply Of Goods On Credit?

1. Schedule 1 - Goods Description: Detailed specifications and descriptions of goods to be supplied

2. Schedule 2 - Pricing Schedule: Detailed pricing information, including any volume discounts

3. Schedule 3 - Credit Terms: Detailed credit limits, payment terms, and interest calculations

4. Schedule 4 - Delivery Requirements: Specific delivery locations, times, and procedures

5. Schedule 5 - Quality Standards: Detailed quality requirements and testing procedures

6. Schedule 6 - Form of Purchase Order: Standard form for placing orders under the agreement

7. Appendix A - Security Documents: Forms of any required security documents or guarantees

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

Service Agreement

Cost

Free to use
Relevant legal definitions




























Clauses




























Relevant Industries

Manufacturing

Retail

Wholesale Trade

Construction

Automotive

Electronics

Fast-Moving Consumer Goods

Industrial Equipment

Raw Materials

Textiles

Food and Beverage

Agriculture

Chemical Products

Pharmaceutical

Relevant Teams

Legal

Finance

Procurement

Supply Chain

Credit Control

Operations

Sales

Treasury

Risk Management

Commercial

Relevant Roles

Chief Financial Officer

Procurement Manager

Credit Controller

Supply Chain Manager

Commercial Director

Finance Director

Legal Counsel

Credit Risk Manager

Operations Manager

Purchasing Officer

Account Manager

Sales Director

Treasury Manager

Contract Administrator

Business Development Manager

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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