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Term Service Agreement Template for Malaysia

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Key Requirements PROMPT example:

Term Service Agreement

"I need a Term Service Agreement for an IT managed services provider delivering cloud infrastructure maintenance and cybersecurity services to a Malaysian manufacturing company, with service levels and data protection requirements aligned with Malaysian law and starting from March 2025."

Document background
The Term Service Agreement serves as a fundamental legal instrument for establishing long-term service arrangements in Malaysia. It is commonly used when parties need to formalize an ongoing service relationship that requires detailed specification of service scope, performance standards, and mutual obligations. This document type is essential for businesses operating under Malaysian jurisdiction, particularly in compliance with the Contracts Act 1950 and related legislation. The agreement typically includes comprehensive terms covering service delivery, payment mechanisms, performance metrics, and risk allocation, making it suitable for both straightforward and complex service arrangements. Its structure allows for customization while maintaining compliance with Malaysian legal requirements.
Suggested Sections

1. Parties: Identifies and provides full details of the contracting parties

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

3. Definitions and Interpretation: Defines key terms and establishes rules for interpreting the agreement

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

5. Term and Renewal: Duration of the agreement and conditions for renewal

6. Payment Terms: Fees, payment schedule, and payment methods

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

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

9. Service Levels: Performance standards and metrics for service delivery

10. Confidentiality: Protection and handling of confidential information

11. Intellectual Property: Ownership and usage rights of IP created or used in services

12. Liability and Indemnification: Allocation of risks and responsibilities for damages

13. Termination: Circumstances and procedures for ending the agreement

14. Governing Law and Jurisdiction: Applicable law and courts for dispute resolution

15. General Provisions: Standard boilerplate clauses including notices, amendments, etc.

Optional Sections

1. Data Protection: Required when personal data processing is involved in service delivery

2. Force Majeure: Addresses unforeseeable circumstances preventing performance

3. Insurance: Required when specific insurance coverage needs to be maintained

4. Anti-Corruption: Required for compliance with anti-bribery laws and regulations

5. Change Control: Needed when services may require modification during the term

6. Personnel Requirements: Used when specific staff qualifications or security clearances are required

7. Audit Rights: Important when client needs right to audit service provider's operations

8. Business Continuity: Required for critical services requiring disaster recovery planning

Suggested Schedules

1. Schedule 1 - Service Description: Detailed specifications of services to be provided

2. Schedule 2 - Service Levels and KPIs: Detailed performance metrics and measurement criteria

3. Schedule 3 - Pricing and Payment Schedule: Detailed breakdown of fees and payment terms

4. Schedule 4 - Contact Details and Escalation Matrix: Key personnel and communication protocols

5. Schedule 5 - Required Insurance Coverage: Specific insurance types and coverage amounts

6. Appendix A - Form of Change Order: Template for documenting agreed changes to services

7. Appendix B - Service Report Template: Standard format for service performance reporting

Authors

Alex Denne

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

Relevant legal definitions







































Clauses









































Relevant Industries

Information Technology

Professional Services

Facilities Management

Manufacturing

Healthcare

Telecommunications

Financial Services

Construction

Education

Energy

Logistics

Consulting

Relevant Teams

Legal

Operations

Procurement

Commercial

Risk and Compliance

Business Development

Project Management

Service Delivery

Account Management

Finance

Administration

Relevant Roles

Legal Counsel

Contract Manager

Operations Director

Procurement Manager

Commercial Director

Risk Manager

Compliance Officer

Business Development Manager

Project Manager

Service Delivery Manager

Account Manager

Chief Operating Officer

General 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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