This Procurement Agreement template is designed for use in Malaysian commercial transactions, providing a structured framework for businesses engaging in regular procurement activities. The document is particularly relevant for organizations requiring a formal agreement to govern their supply chain relationships, whether for goods or services. As a Procurement Agreement under Malaysian law, it incorporates key requirements from the Contracts Act 1950, Sale of Goods Act 1957, and other relevant Malaysian legislation. The agreement is suitable for both domestic and international procurement relationships, covering crucial aspects such as ordering mechanisms, quality standards, delivery terms, pricing structures, and dispute resolution procedures. It can be customized based on specific industry requirements while maintaining compliance with Malaysian legal frameworks.
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1. Parties: Identification and details of the supplier and purchaser, including registration numbers and registered addresses
2. Background: Context of the procurement relationship and general intent of the parties
3. Definitions: Definitions of key terms used throughout the agreement
4. Scope of Agreement: Overview of the procurement relationship and general obligations of both parties
5. Ordering Process: Procedures for placing and accepting purchase orders, including minimum order quantities if applicable
6. Pricing and Payment Terms: Agreed prices, payment schedules, invoicing requirements, and payment methods
7. Delivery Terms: Delivery timeframes, shipping terms, transfer of risk and title
8. Quality Standards: Required quality standards, inspection rights, and acceptance criteria
9. Warranties: Warranties regarding products/services quality, fitness for purpose, and compliance with specifications
10. Term and Termination: Duration of agreement, renewal terms, and termination rights
11. Confidentiality: Protection of confidential information exchanged during the procurement relationship
12. Force Majeure: Events excusing performance and procedures for handling force majeure situations
13. Dispute Resolution: Process for resolving disputes, including jurisdiction and governing law
14. General Provisions: Standard boilerplate clauses including notices, assignment, and entire agreement
1. International Shipping: Include when procurement involves cross-border shipments, covering customs, duties, and international trade terms
2. Intellectual Property Rights: Include when procurement involves software, technology or proprietary materials
3. Performance Metrics: Include when specific KPIs or service levels need to be maintained
4. Insurance Requirements: Include when specific insurance coverage is required from the supplier
5. Compliance with Laws: Include detailed compliance requirements when dealing with regulated industries or products
6. Environmental Requirements: Include when procurement involves environmental considerations or sustainability requirements
7. Security Requirements: Include when handling sensitive data or accessing secure facilities
8. Training and Support: Include when procurement includes ongoing support or training services
1. Schedule 1 - Products/Services Specification: Detailed technical specifications of products or services being procured
2. Schedule 2 - Pricing Schedule: Detailed pricing information, including volume discounts and price adjustment mechanisms
3. Schedule 3 - Service Levels: Specific performance metrics, KPIs, and measurement methodologies
4. Schedule 4 - Order Form Template: Standard format for purchase orders under the agreement
5. Schedule 5 - Quality Control Procedures: Detailed quality control and testing procedures
6. Schedule 6 - Contact Details: Key contact persons and escalation matrix for both parties
7. Appendix A - Compliance Checklist: Required compliance certifications and standards
8. Appendix B - Delivery Locations: List of approved delivery locations and specific delivery requirements
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