The Non-Binding Partnership Agreement is commonly used in Malaysian business practice as a preliminary step in establishing business relationships, particularly when parties wish to formalize their intentions without creating legally binding obligations. This document type is especially valuable during the exploratory phase of potential partnerships, allowing parties to outline their proposed collaboration structure while maintaining flexibility to adjust terms or withdraw without legal consequences. It typically includes sections covering intended business objectives, resource contributions, operational frameworks, and partnership scope, while explicitly stating its non-binding nature. The agreement serves as a useful tool for businesses operating under Malaysian jurisdiction who are in the process of evaluating potential partnerships or seeking to document preliminary understandings before proceeding to formal binding arrangements.
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1. Parties: Identification and details of all parties entering into the partnership arrangement
2. Background: Context and circumstances leading to the partnership arrangement
3. Definitions: Key terms used throughout the agreement and their meanings
4. Non-Binding Nature: Clear statement of the non-binding nature of the agreement and its intended effect
5. Purpose of Partnership: Detailed description of the partnership's objectives and scope
6. Roles and Responsibilities: General outline of each party's roles and contributions
7. Resource Contributions: Intended contributions of capital, assets, or resources by each party
8. Decision Making Process: Framework for how decisions will be made between partners
9. Confidentiality: Handling of confidential information shared between parties
10. Duration and Review: Intended timeframe for the partnership and review periods
11. Termination: Process for ending the partnership arrangement
12. Governing Law: Statement that the arrangement is subject to Malaysian law
1. Intellectual Property: Provisions regarding ownership and use of IP when relevant to the partnership
2. Marketing and Branding: Guidelines for use of names, logos, and brand elements when public-facing activities are involved
3. Dispute Resolution: Preferred approach to resolving disagreements, though non-binding
4. Insurance: Expected insurance coverage when activities involve significant risks
5. Environmental Commitments: Environmental responsibilities when partnership involves environmental impacts
6. Social Responsibility: Corporate social responsibility commitments when relevant to partnership objectives
7. Data Protection: Specific data handling procedures when partnership involves significant data sharing
1. Schedule 1 - Business Plan: Detailed business plan and strategic objectives
2. Schedule 2 - Resource Schedule: Detailed breakdown of intended resource contributions
3. Schedule 3 - Key Personnel: List of key personnel and their roles in the partnership
4. Schedule 4 - Timeline: Proposed timeline for partnership activities and milestones
5. Appendix A - Communication Protocol: Detailed communication procedures between partners
6. Appendix B - Compliance Guidelines: Relevant compliance requirements and guidelines
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