The Flat Fee Agreement is designed for use in the Malaysian business environment where parties wish to establish a clear, fixed-price arrangement for professional services. This document is particularly valuable when service providers and clients want to avoid the uncertainty of hourly rates or variable pricing structures. The agreement comprehensively addresses the scope of services, payment terms, delivery timelines, and mutual obligations while ensuring compliance with Malaysian legal requirements, including the Contracts Act 1950, Consumer Protection Act 1999, and Service Tax Act 2018. It is commonly used by professional service providers, consultants, and businesses seeking to establish transparent, predictable fee arrangements for specific projects or services.
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1. Parties: Identification and details of the service provider and client
2. Background: Context of the agreement and brief description of the parties' intention to enter into a flat fee arrangement
3. Definitions: Key terms used throughout the agreement defined for clarity
4. Scope of Services: Detailed description of the services to be provided under the flat fee arrangement
5. Fee Structure: Clear statement of the flat fee amount, payment terms, and what the fee includes/excludes
6. Payment Terms: Timeline for payments, method of payment, and consequences of late payment
7. Duration: Term of the agreement, including start and end dates if applicable
8. Obligations of Service Provider: Responsibilities and commitments of the service provider
9. Obligations of Client: Responsibilities and commitments of the client
10. Termination: Conditions under which either party may terminate the agreement and the consequences
11. Governing Law: Specification that Malaysian law governs the agreement
12. Execution: Signature blocks and execution details
1. Confidentiality: Terms regarding confidential information handling, used when sensitive information will be shared
2. Intellectual Property: Provisions regarding ownership of work product, necessary when creative or technical work is involved
3. Force Majeure: Provisions for unforeseen circumstances, recommended for longer-term arrangements
4. Insurance: Requirements for professional indemnity or other insurance, important for high-risk services
5. Dispute Resolution: Specific procedures for handling disputes, recommended for high-value contracts
6. Non-Competition: Restrictions on competitive activities, relevant when sharing sensitive business information
7. Assignment: Terms regarding the transfer of rights and obligations, important for corporate clients
1. Schedule A - Detailed Scope of Services: Comprehensive breakdown of services covered under the flat fee
2. Schedule B - Fee Breakdown: Detailed breakdown of the flat fee components if applicable
3. Schedule C - Timeline and Deliverables: Specific milestones and delivery dates for the services
4. Schedule D - Service Level Requirements: Specific performance standards and metrics if applicable
5. Appendix 1 - Required Documentation: List of documents required from the client
6. Appendix 2 - Contact Information: Key contact persons and their details for both parties
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