Document background
The Distribution Agreement Contract is a crucial legal instrument used in Malaysian commercial practice to establish and govern the relationship between suppliers/manufacturers and their distributors. This agreement is essential when a business wants to expand its market reach through authorized distributors while maintaining control over how its products are sold and distributed. The document, governed by Malaysian law, typically includes detailed provisions on territory rights, pricing structures, minimum purchase requirements, and performance obligations. It must comply with Malaysian regulations, including the Contracts Act 1950, Competition Act 2010, and relevant industry-specific legislation. The agreement is particularly important in protecting both parties' interests while ensuring clear guidelines for the distribution relationship, including handling of intellectual property rights, confidentiality, and dispute resolution mechanisms under Malaysian jurisdiction.
