The Circumvention Agreement is a crucial document in Malaysian business transactions where parties need to protect valuable business relationships, introductions, or opportunities from being bypassed or circumvented. It is particularly relevant when dealing with intermediaries, agents, or business facilitators where there is a risk of direct dealing that excludes the original introducer or intermediary. The agreement, governed by Malaysian law, typically includes detailed provisions on protected relationships, prohibited activities, duration of obligations, and remedies for breach. It must comply with Malaysian contract law principles, including the Contracts Act 1950, and consider relevant commercial regulations such as the Competition Act 2010. This document is essential for businesses operating in Malaysia that rely on intermediary relationships or want to protect their business networks and opportunities.
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1. Parties: Identification of all parties to the agreement, including full legal names and registration details
2. Background: Context of the business relationship and purpose of the agreement
3. Definitions: Detailed definitions of key terms, particularly 'circumvention', 'protected relationships', and 'prohibited activities'
4. Scope of Protected Business: Detailed description of the business relationships, transactions, or opportunities that are protected under the agreement
5. Prohibited Activities: Specific actions and behaviors that constitute circumvention under the agreement
6. Duration: Term of the agreement and any survival provisions
7. Undertakings: Specific promises and commitments made by each party regarding non-circumvention
8. Confidentiality: Obligations regarding confidential information shared during the business relationship
9. Breach and Remedies: Consequences of breach and available remedies, including damages and injunctive relief
10. Governing Law and Jurisdiction: Specification of Malaysian law as governing law and jurisdiction for disputes
1. Commission Structure: Used when the agreement involves intermediary relationships and commission payments
2. Non-Solicitation: Added when there's a need to prevent solicitation of employees or contractors
3. Territorial Restrictions: Included when the non-circumvention obligations are limited to specific geographic areas
4. Assignment: Added when there's a need to restrict or permit the transfer of rights under the agreement
5. Force Majeure: Included when parties want to address circumstances beyond their control that might affect performance
6. Dispute Resolution: Optional detailed dispute resolution procedures, such as mandatory mediation before litigation
1. Schedule 1 - Protected Relationships: Detailed list of specific business relationships, contacts, or opportunities protected under the agreement
2. Schedule 2 - Prohibited Activities: Comprehensive list of specific actions and behaviors that constitute circumvention
3. Schedule 3 - Commission Rates: If applicable, detailed breakdown of commission structures and payment terms
4. Schedule 4 - Authorized Representatives: List of individuals authorized to act on behalf of each party regarding the protected relationships
5. Appendix A - Notification Requirements: Detailed procedures for required notifications under the agreement
6. Appendix B - Compliance Procedures: Specific procedures and protocols for ensuring compliance with the agreement
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