Agency Fee Agreement Template for Malaysia

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Key Requirements PROMPT example:

Agency Fee Agreement

"I need an Agency Fee Agreement for appointing a Malaysian sales agent to represent my Singapore-based technology company in Kuala Lumpur, with a tiered commission structure starting from March 2025 and including strict performance targets."

Document background
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.
Suggested Sections

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

Optional Sections

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

Suggested Schedules

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

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

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

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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