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Monthly Retainer Agreement Template for Malaysia

A Monthly Retainer Agreement is a legal document governed by Malaysian law that establishes an ongoing professional service arrangement between a service provider and a client. The agreement details the scope of regular services to be provided, sets a fixed monthly fee structure, and outlines the rights and obligations of both parties. It includes provisions for service delivery, payment terms, confidentiality, and termination conditions, all structured in compliance with Malaysian contract law and relevant regulatory requirements. This document is particularly important for professional service relationships requiring consistent, ongoing engagement.

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What is a Monthly Retainer Agreement?

The Monthly Retainer Agreement serves as a foundational document for establishing long-term professional service relationships in Malaysia. It is commonly used when a client requires regular, ongoing access to professional services in exchange for a predetermined monthly fee. This agreement type is particularly valuable for businesses seeking consistent professional support without the need for separate engagement agreements for each service instance. The document complies with Malaysian legal requirements, including the Contracts Act 1950 and relevant service industry regulations. It typically includes comprehensive details about service scope, delivery standards, fee structures, and operational procedures, making it suitable for various professional service arrangements from consulting to advisory services. The Monthly Retainer Agreement helps create clarity and certainty in professional relationships while ensuring both parties' interests are protected under Malaysian law.

What sections should be included in a Monthly Retainer Agreement?

1. Parties: Identification and details of the service provider and client, including registration numbers and addresses

2. Background: Context of the agreement and brief description of the parties' intention to enter into a retainer arrangement

3. Definitions: Key terms used throughout the agreement defined for clarity and consistency

4. Scope of Services: Detailed description of the services to be provided under the retainer arrangement

5. Term and Renewal: Duration of the agreement and provisions for renewal or extension

6. Retainer Fee and Payment Terms: Monthly fee amount, payment schedule, invoicing process, and late payment consequences

7. Service Provider's Obligations: Key responsibilities and commitments of the service provider

8. Client's Obligations: Key responsibilities and commitments of the client

9. Confidentiality: Provisions for handling confidential information exchanged during the service relationship

10. Intellectual Property: Ownership and rights related to any IP created during the service provision

11. Termination: Grounds and process for terminating the agreement

12. Governing Law and Jurisdiction: Specification of Malaysian law as governing law and jurisdiction for disputes

13. General Provisions: Standard clauses including notices, entire agreement, and severability

What sections are optional to include in a Monthly Retainer Agreement?

1. Additional Services: Terms for services beyond the standard retainer scope, used when the agreement allows for ad-hoc additional work

2. Service Levels: Specific performance metrics and standards, included when service quality measurements are required

3. Personnel: Details about key personnel assigned to the client, used when specific team members are crucial to the arrangement

4. Insurance: Insurance requirements and coverage details, included for high-risk or regulated services

5. Data Protection: Specific data handling and protection requirements, needed when personal data processing is involved

6. Non-Competition: Restrictions on competing activities, included when protecting business interests is crucial

7. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in long-term arrangements

8. Dispute Resolution: Detailed process for handling disputes, including mediation or arbitration procedures

What schedules should be included in a Monthly Retainer Agreement?

1. Schedule 1 - Scope of Services: Detailed breakdown of services included in the monthly retainer

2. Schedule 2 - Fee Structure: Detailed breakdown of the monthly retainer fee and any additional charges

3. Schedule 3 - Service Levels: Specific metrics and standards for service delivery

4. Schedule 4 - Key Personnel: Details of key team members assigned to the client

5. Appendix A - Required Reports: Templates and examples of required regular reports

6. Appendix B - Communication Protocol: Procedures for routine communications and escalations

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

Jurisdiction

Malaysia

Publisher

Genie AI

Document Type

Retainer Agreement

Cost

Free to use

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