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Service Fee Agreement for Malaysia

Service Fee Agreement Template for Malaysia

A comprehensive legal agreement governed by Malaysian law that establishes the terms and conditions under which one party (the service provider) agrees to provide specific services to another party (the client) for a defined fee structure. The agreement encompasses key elements including service scope, payment terms, performance standards, confidentiality obligations, and liability limitations, all structured in compliance with Malaysian contract law and relevant regulatory requirements. It provides a clear framework for the service relationship while protecting both parties' interests through well-defined rights and obligations.

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What is a Service Fee Agreement?

The Service Fee Agreement is a crucial commercial document used when establishing a formal service provision relationship between parties under Malaysian law. It is particularly relevant when a business or individual provides professional, technical, or specialized services in exchange for agreed compensation. This agreement type is essential for clearly defining the scope of services, payment terms, service standards, and mutual obligations while ensuring compliance with Malaysian legislation including the Contracts Act 1950 and Service Tax Act 2018. The document helps prevent disputes by clearly outlining deliverables, payment terms, and performance expectations, while also addressing important aspects such as confidentiality, intellectual property rights, and liability limitations.

What sections should be included in a Service Fee Agreement?

1. Parties: Identifies and provides full details of the service provider and service recipient

2. Background: Sets out the context and purpose of the agreement

3. Definitions: Defines key terms used throughout the agreement

4. Scope of Services: Detailed description of the services to be provided

5. Service Fee and Payment Terms: Specifies the fees, payment schedule, invoicing process, and payment methods

6. Term and Termination: Duration of the agreement and circumstances for termination

7. Obligations of Service Provider: Key responsibilities and commitments of the service provider

8. Obligations of Client: Key responsibilities and commitments of the client

9. Confidentiality: Provisions protecting confidential information of both parties

10. Intellectual Property: Ownership and rights related to any IP created or used in providing the services

11. Limitation of Liability: Caps on liability and exclusions of certain types of damages

12. Force Majeure: Provisions for handling events beyond parties' reasonable control

13. Governing Law and Jurisdiction: Confirms Malaysian law applies and specifies courts for dispute resolution

14. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment

What sections are optional to include in a Service Fee Agreement?

1. Service Levels: Include when specific performance metrics or standards need to be maintained

2. Data Protection: Required when services involve processing personal data

3. Non-Competition: Include when restricting service provider from working with competitors

4. Insurance: Include when specific insurance coverage is required for the services

5. Audit Rights: Include for services where client needs right to audit provider's operations

6. Compliance with Laws: Include when services are in regulated industries or involve specific regulatory requirements

7. Subcontracting: Include when service provider may need to engage subcontractors

8. Change Control: Include when scope of services may need formal process for modifications

What schedules should be included in a Service Fee Agreement?

1. Schedule 1 - Service Description: Detailed technical or operational specifications of the services

2. Schedule 2 - Fee Schedule: Detailed breakdown of fees, rates, and charging mechanisms

3. Schedule 3 - Service Levels: Specific metrics, KPIs, and performance standards if applicable

4. Schedule 4 - Contact Details: Key personnel and contact information for both parties

5. Schedule 5 - Required Insurance: Details of insurance types and coverage levels if required

6. Appendix A - Form of Invoice: Template for invoices if specific format required

7. Appendix B - Change Request Form: Standard form for requesting changes to services if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Malaysia

Publisher

Ƶ

Document Type

Fee Agreement

Cost

Free to use
Relevant legal definitions






















Clauses

































Relevant Industries

Information Technology

Professional Services

Consulting

Education

Healthcare

Financial Services

Manufacturing

Real Estate

Construction

Telecommunications

Business Process Outsourcing

Legal Services

Marketing and Advertising

Research and Development

Relevant Teams

Legal

Finance

Operations

Procurement

Commercial

Business Development

Compliance

Risk Management

Project Management

Account Management

Service Delivery

Relevant Roles

Legal Counsel

Contract Manager

Business Development Manager

Chief Financial Officer

Operations Director

Procurement Manager

Project Manager

Account Manager

Compliance Officer

Commercial Director

Service Delivery Manager

Finance Manager

Chief Executive Officer

Risk Manager

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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