The Sourcing Agent Agreement is essential for companies seeking to establish efficient procurement channels in Malaysia and surrounding regions. This document is typically used when a company (the Principal) requires local expertise and representation to source products, materials, or services from suppliers in specific territories. The agreement, governed by Malaysian law, comprehensively outlines the agent's authority, duties, and compensation structure, while ensuring compliance with local regulations including the Contracts Act 1950, Malaysian Anti-Corruption Commission Act 2009, and relevant trade laws. It's particularly valuable for international companies entering the Malaysian market or local companies expanding their sourcing operations, providing a clear framework for the agent's role in supplier identification, negotiation, quality control, and ongoing relationship management.
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1. Parties: Identification of the Principal and the Sourcing Agent, including full legal names and registration details
2. Background: Context of the agreement and brief description of the parties' business relationship
3. Definitions: Key terms used throughout the agreement
4. Appointment and Scope: Formal appointment of agent and detailed scope of services
5. Agent's Authority: Extent and limitations of agent's authority to act on behalf of principal
6. Agent's Duties and Responsibilities: Detailed obligations including sourcing, negotiation, quality control, and reporting
7. Principal's Obligations: Principal's responsibilities including information provision and payment obligations
8. Compensation: Fee structure, commission rates, and payment terms
9. Compliance: Obligations to comply with relevant laws, regulations, and ethical standards
10. Confidentiality: Protection of confidential information and trade secrets
11. Term and Termination: Duration of agreement and termination provisions
12. Post-Termination Obligations: Obligations surviving termination and handover requirements
13. General Provisions: Standard boilerplate clauses including notices, amendments, and governing law
1. Exclusivity: Used when the agent is granted exclusive rights in specific territories or for specific products
2. Performance Targets: Include when specific KPIs or minimum performance requirements are needed
3. Intellectual Property: Required when the agent will be handling branded products or creating new IP
4. Insurance: Detailed insurance requirements when dealing with high-value goods or specific risks
5. Anti-Corruption Compliance: Enhanced compliance provisions for high-risk territories or government contracts
6. Force Majeure: Detailed force majeure provisions for agreements with critical supply chain implications
7. Data Protection: Required when personal data processing is involved in the sourcing activities
1. Schedule 1 - Services Description: Detailed description of sourcing services to be provided
2. Schedule 2 - Territory: Definition of geographical areas covered by the agreement
3. Schedule 3 - Commission Structure: Detailed breakdown of commission rates and calculation methods
4. Schedule 4 - Approved Suppliers: List of pre-approved suppliers if applicable
5. Schedule 5 - Reporting Requirements: Templates and timing for required reports
6. Schedule 6 - Quality Standards: Specific quality requirements and inspection procedures
7. Appendix A - Power of Attorney: If required, formal authorization for agent to act on principal's behalf
8. Appendix B - Code of Conduct: Ethical business practices and compliance requirements
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