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An Agreement Not to Sue is a strategic legal instrument used when parties wish to formally resolve potential disputes without resorting to litigation. This document is particularly relevant in Malaysian business and civil contexts where parties have identified potential legal claims but prefer to settle their differences through negotiation rather than court proceedings. The agreement typically arises in situations involving commercial disputes, employment matters, or personal injury claims, where the potential defendant provides consideration in exchange for the potential claimant's promise not to pursue legal action. It must comply with Malaysian contract law requirements and civil procedure rules to be enforceable. The document includes essential elements such as the scope of claims being waived, consideration details, duration of the agreement, and governing law provisions.

1. Parties: Identifies and defines all parties to the agreement, including their legal status and contact details

2. Background: Sets out the context of the dispute or potential claims and the parties' intention to resolve through an agreement not to sue

3. Definitions: Defines key terms used throughout the agreement, including the scope of claims and relevant dates

4. Agreement Not to Sue: Core covenant where the party/parties agree not to initiate or pursue legal proceedings for specified claims

5. Scope of Claims: Detailed description of the claims, causes of action, and rights being waived

6. Consideration: Details of the consideration being provided in exchange for the agreement not to sue

7. Representations and Warranties: Statements by the parties regarding their authority to enter into the agreement and understanding of its implications

8. Duration: Specifies the time period for which the agreement remains in effect

9. Governing Law: Specifies Malaysian law as the governing law and relevant jurisdiction

10. Entire Agreement: Confirms that this document represents the complete agreement between the parties