Document background
The Framework Supply Agreement serves as a master agreement governing the ongoing supply relationship between parties operating in Malaysia. It is particularly useful for businesses requiring regular or recurring supplies without wanting to negotiate individual contracts for each transaction. This document type combines the requirements of Malaysian commercial law with practical business needs, establishing key commercial terms while maintaining flexibility for specific orders. The agreement typically includes core terms such as pricing mechanisms, quality standards, and delivery requirements, while allowing for individual purchase orders to be placed under its framework. When drafting a Framework Supply Agreement, consideration must be given to Malaysian regulatory requirements, including the Contracts Act 1950, Sale of Goods Act 1957, and where applicable, industry-specific regulations and Shariah law principles. The document is structured to provide certainty for the principal commercial terms while allowing operational flexibility through schedules and purchase orders.
