The Non Reliance Letter Hold Harmless Letter is a critical risk management tool in Malaysian business transactions where one party needs to share information with another while limiting potential liability. This document type is commonly used in contexts such as due diligence exercises, financial advisory services, and corporate transactions where information needs to be shared but the provider wishes to ensure they won't be held liable for the recipient's reliance on such information. Under Malaysian law, these letters must be carefully drafted to ensure compliance with the Contracts Act 1950 and other relevant legislation while effectively protecting the information provider's interests. The document typically includes specific descriptions of the information being shared, explicit non-reliance acknowledgments, and comprehensive hold harmless provisions.
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1. Letter Header: Date, recipient details, and sender details
2. Subject Line: Clear identification of the letter's purpose (Non-Reliance and Hold Harmless Letter)
3. Introduction: Identification of parties and context of the information or materials being addressed
4. Information Description: Specific description of the information, materials, or statements being disclaimed
5. Non-Reliance Statement: Express acknowledgment that recipient is not relying on the information/materials provided
6. Hold Harmless Provisions: Statement of agreement to hold harmless and indemnify the provider regarding the information
7. Governing Law: Specification of Malaysian law as governing law
8. Signature Block: Execution portions for both parties
1. Confidentiality Provisions: Added when the disclaimed information is confidential or proprietary
2. Multiple Party Provisions: Include when multiple parties are providing or receiving information
3. Specific Disclaimers: Additional specific disclaimers for particular types of information (e.g., financial projections, technical data)
4. Duration: Specific time period for which the non-reliance and hold harmless provisions apply
5. Survival: Statement that provisions survive termination of any related agreements
6. Notice Provisions: Include when ongoing communications between parties are anticipated
1. Schedule A - Information Description: Detailed list or description of specific information, materials, or statements being disclaimed
2. Schedule B - Related Parties: List of affiliated entities or individuals covered by the letter when applicable
3. Schedule C - Specific Circumstances: Description of specific circumstances or context relating to the non-reliance provisions
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