Supply and Procurement Contracts in Malaysia
Supply and procurement contracts govern the terms on which goods, materials, or services are provided from one party to another on a recurring or project basis.
Scope of Assistance
- Supply agreement drafting and review
- Procurement contract preparation
- Terms and conditions of supply from both supplier and buyer perspectives
- Pricing mechanisms and variation clauses
- Delivery, acceptance, and rejection provisions
- Warranty and defect liability clauses
- Force majeure and supply chain disruption provisions
- Termination for convenience and termination for cause
Key Provisions
Supply and procurement contracts should address the specification of goods or services, pricing and payment terms, delivery obligations and timelines, acceptance testing and rejection rights, risk and title transfer, warranty obligations, liability limitations, and default remedies.
Where the supply relationship is ongoing, the agreement should also address minimum order commitments, price review mechanisms, and the process for varying the terms.
Practical Considerations
Supply contracts often involve standard terms that one party seeks to impose on the other. It is important to review these carefully, as they may contain onerous liability caps, unilateral variation rights, or unfavourable obligations.
We assist clients in reviewing and negotiating these terms from both the supplier and buyer perspective.
Legal Framework
Supply and procurement contracts are governed by the Contracts Act 1950 and the Sale of Goods Act 1957. Where consumer transactions are involved, the Consumer Protection Act 1999 may also apply.
Sector-specific regulations may impose additional requirements in areas such as pharmaceuticals, food, and construction.
Back
Commercial Contracts Home
Next
Shareholders & Corporate Docs
Back