The Commercial Use Agreement serves as a fundamental legal instrument in Malaysian business transactions, establishing the parameters for commercial utilization of various assets, products, or services. This document is essential when one party wishes to grant another party the right to use their property or assets for commercial purposes, whether it's intellectual property, software, equipment, or other commercial assets. The agreement must comply with Malaysian law, particularly the Contracts Act 1950 and related commercial legislation, while addressing modern business needs. It's commonly used in situations ranging from software licensing to equipment usage, franchise arrangements, and various other commercial applications. The document includes comprehensive terms covering usage rights, limitations, payment structures, warranties, and dispute resolution mechanisms, all within the Malaysian legal framework.
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1. Parties: Identification and details of the contracting parties
2. Background: Context of the agreement and relationship between the parties
3. Definitions: Definitions of key terms used throughout the agreement
4. Grant of Rights: Scope of commercial use rights being granted
5. Terms of Use: Specific conditions and limitations on commercial use
6. Payment Terms: Fees, payment schedule, and related financial terms
7. Term and Termination: Duration of agreement and termination conditions
8. Representations and Warranties: Promises and guarantees made by each party
9. Intellectual Property Rights: Protection and ownership of IP rights
10. Confidentiality: Protection of confidential information
11. Limitation of Liability: Limits on parties' liability and exclusions
12. Indemnification: Obligations to protect against losses
13. Governing Law and Jurisdiction: Applicable law and dispute resolution
14. General Provisions: Standard boilerplate clauses including notices, assignment, and amendments
1. Quality Standards: Specific quality requirements for goods or services - include when agreement involves physical products or service delivery
2. Technical Requirements: Technical specifications and requirements - include for software or technology-related agreements
3. Territory Restrictions: Geographic limitations on commercial use - include when use is restricted to specific regions
4. Marketing and Promotion: Terms regarding marketing of products/services - include when agreement involves promotional rights
5. Data Protection: Specific data handling requirements - include when personal data processing is involved
6. Training and Support: Support services provisions - include when ongoing support is part of the agreement
7. Insurance: Insurance requirements - include for high-risk commercial activities
8. Audit Rights: Rights to audit usage and compliance - include for revenue-sharing or usage-based agreements
1. Schedule 1 - Commercial Terms: Detailed pricing, payment terms, and commercial conditions
2. Schedule 2 - Technical Specifications: Detailed technical requirements and specifications
3. Schedule 3 - Service Levels: Performance metrics and service level requirements
4. Schedule 4 - Approved Uses: Specific approved commercial uses and examples
5. Schedule 5 - Territory Map: Detailed description or map of approved territories
6. Appendix A - Contact Details: Key contact information for both parties
7. Appendix B - Required Forms: Standard forms and documentation required under the agreement
8. Appendix C - Compliance Requirements: Detailed compliance and regulatory requirements
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