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Long Term Supplier Agreement Template for Malaysia

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Key Requirements PROMPT example:

Long Term Supplier Agreement

"I need a Long Term Supplier Agreement for my Malaysian manufacturing company to purchase electronic components from a supplier in Penang, with specific quality control requirements and quarterly volume commitments starting from March 2025."

Document background
The Long Term Supplier Agreement is essential for businesses seeking to establish stable, long-term supply relationships in Malaysia. It is particularly relevant for companies requiring regular supply of goods or materials where consistency, quality, and security of supply are crucial. The agreement addresses both commercial and operational aspects of the supply relationship, incorporating Malaysian legal requirements and industry-specific regulations. It is commonly used in manufacturing, industrial, and commercial sectors where businesses need to secure reliable supply chains. The document typically includes detailed terms on pricing mechanisms, volume commitments, quality standards, and performance metrics, while providing flexibility to accommodate changes in business needs over time. This type of agreement is crucial for risk management and ensuring compliance with Malaysian regulatory requirements, particularly under the Contracts Act 1950 and related commercial legislation.
Suggested Sections

1. Parties: Identification of the supplier and customer, including full legal names, registration numbers, and registered addresses

2. Background: Context of the agreement, relationship between parties, and purpose of the long-term supply arrangement

3. Definitions and Interpretation: Definitions of key terms, interpretation rules, and hierarchy of documents

4. Supply Obligations: Core obligations of supplier, including quality standards, quantities, and delivery requirements

5. Term and Renewal: Duration of agreement, renewal options, and notice periods

6. Ordering Process: Procedures for placing and accepting orders, lead times, and order modifications

7. Pricing and Payment: Price structure, payment terms, invoicing requirements, and price adjustment mechanisms

8. Delivery and Acceptance: Delivery terms, acceptance procedures, and transfer of risk and title

9. Quality Requirements: Quality standards, specifications, testing procedures, and quality control processes

10. Warranties: Supplier warranties regarding products, compliance with laws, and general warranties

11. Liability and Indemnity: Limitation of liability, indemnification obligations, and insurance requirements

12. Confidentiality: Protection of confidential information and trade secrets

13. Force Majeure: Events constituting force majeure and consequences

14. Termination: Termination rights, grounds for termination, and consequences of termination

15. General Provisions: Standard boilerplate clauses including notices, assignment, and governing law

Optional Sections

1. Intellectual Property Rights: Include when supply involves licensed technology, branded products, or IP rights

2. Compliance with Laws: Detailed section needed when industry-specific regulations apply or for regulated products

3. Environmental Requirements: Include for supplies involving environmental considerations or hazardous materials

4. Business Continuity: Important for critical supplies or when customer requires backup supply arrangements

5. Key Performance Indicators: Include when specific performance metrics will be tracked

6. Anti-Corruption: Detailed section needed for high-risk jurisdictions or government-related contracts

7. Data Protection: Required when personal data processing is involved

8. Import/Export Compliance: Include for international supply arrangements

9. Change Control: Important for technical products or where specifications may change frequently

Suggested Schedules

1. Schedule 1 - Products and Specifications: Detailed list of products, technical specifications, and quality standards

2. Schedule 2 - Pricing Schedule: Detailed pricing structure, including any volume discounts or pricing mechanisms

3. Schedule 3 - Service Levels: Performance metrics, KPIs, and associated remedies or penalties

4. Schedule 4 - Order and Delivery Process: Detailed procedures for ordering, minimum order quantities, and delivery requirements

5. Schedule 5 - Quality Control Procedures: Detailed quality control processes, testing requirements, and acceptance criteria

6. Schedule 6 - Key Contacts: List of key personnel and escalation procedures

7. Appendix A - Form of Purchase Order: Standard form for placing orders under the agreement

8. Appendix B - Technical Documentation: Product manuals, safety data sheets, or other technical documentation

9. Appendix C - Compliance Certificates: Required certifications, permits, or compliance documentation

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions








































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Relevant Industries

Manufacturing

Automotive

Electronics

Chemical

Food and Beverage

Pharmaceutical

Industrial Equipment

Textiles

Construction Materials

Agriculture

Energy

Technology Hardware

Packaging

Raw Materials

Relevant Teams

Legal

Procurement

Supply Chain

Operations

Finance

Quality Assurance

Compliance

Risk Management

Commercial

Production

Logistics

Relevant Roles

Procurement Manager

Supply Chain Director

Commercial Director

Legal Counsel

Contract Manager

Operations Manager

Quality Assurance Manager

Business Development Manager

Chief Financial Officer

Compliance Officer

Sourcing Manager

Vendor Manager

Production Manager

Category Manager

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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