This Framework Contract is designed for use in commercial relationships where parties anticipate ongoing transactions but want flexibility in determining specific quantities and timing of deliveries. The document establishes a master agreement governed by Malaysian law, under which parties can place individual orders (call-offs) without negotiating terms for each transaction. It includes essential provisions required by Malaysian law while incorporating international best practices for framework agreements. The document is particularly useful for businesses seeking to streamline their procurement processes while maintaining legal compliance and commercial certainty. It contains comprehensive terms covering ordering procedures, pricing mechanisms, quality standards, and dispute resolution, while allowing for specific details to be determined in individual purchase orders.
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1. Parties: Identification and details of the contracting parties
2. Background: Context of the agreement and general commercial intent of the parties
3. Definitions and Interpretation: Defined terms and rules for interpreting the agreement
4. Scope of Framework: General scope and nature of goods/services covered by the framework
5. Duration and Term: Initial term and renewal provisions of the framework agreement
6. Call-off Procedures: Process for placing and accepting individual orders under the framework
7. Pricing and Payment Terms: Basic pricing structure, payment terms, and invoice requirements
8. Quality Standards: Minimum quality requirements for goods/services
9. Obligations of the Parties: Core responsibilities of each party under the framework
10. Termination: Circumstances and process for ending the agreement
11. Confidentiality: Protection of confidential information
12. Governing Law and Jurisdiction: Malaysian law as governing law and jurisdiction for disputes
1. Exclusivity: Terms regarding exclusive/non-exclusive nature of the arrangement
2. Minimum Purchase Commitments: Include when there are guaranteed minimum purchase volumes
3. Performance Security: Required when supplier must provide performance bonds or guarantees
4. Insurance Requirements: Detailed insurance obligations when specific coverage is needed
5. Intellectual Property Rights: Include when IP creation or licensing is relevant to the framework
6. Data Protection: Required when personal data processing is involved
7. Force Majeure: Include when specific force majeure provisions are needed
8. Anti-Corruption: Include for compliance with anti-corruption laws
9. Change Control: Process for making changes to the framework when flexibility is needed
1. Schedule 1 - Goods/Services Description: Detailed specification of goods/services covered
2. Schedule 2 - Pricing Schedule: Detailed pricing structure, rates, and any volume discounts
3. Schedule 3 - Service Levels: Performance metrics and service level requirements
4. Schedule 4 - Call-off Terms: Specific terms applying to individual orders
5. Schedule 5 - Key Personnel: Details of key staff responsible for framework delivery
6. Schedule 6 - Form of Purchase Order: Template for individual orders under the framework
7. Schedule 7 - Technical Requirements: Detailed technical specifications and requirements
8. Schedule 8 - Locations: Delivery locations or service provision sites
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Technology
Retail
Construction
Healthcare
Professional Services
Energy
Telecommunications
Logistics
Financial Services
Education
Infrastructure
Relevant Teams
Legal
Procurement
Commercial
Finance
Operations
Supply Chain
Compliance
Risk Management
Business Development
Vendor Management
Relevant Roles
Procurement Manager
Commercial Director
Legal Counsel
Contract Manager
Supply Chain Manager
Chief Financial Officer
Operations Director
Purchasing Officer
Compliance Officer
Business Development Manager
Risk Manager
Category Manager
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