Document background
The Sales Broker Agreement is essential for businesses operating in Malaysia that wish to engage independent sales representatives to market and sell their products or services. This document is crucial when a company wants to expand its market reach without directly employing sales staff, particularly in new territories or market segments. The agreement must comply with Malaysian commercial law, including the Contracts Act 1950, Sales of Goods Act 1957, and relevant agency regulations. It typically includes detailed provisions on commission structures, territory rights, performance targets, and reporting requirements, while ensuring compliance with local legal requirements for agency relationships. The document is particularly important for protecting both parties' interests and clearly defining the scope of the broker's authority to act on behalf of the principal.
