Description
- A Consulting Agreement is a legally binding contract between a consultant and a client that outlines the terms and conditions of the consulting services to be provided. It ensures clarity on the scope of work, payment terms, confidentiality, and other obligations to protect the interests of both parties.
GOV Department
- (Depends on the industry and nature of services, e.g., Ministry of Domestic Trade and Consumer Affairs (KPDN) or Companies Commission of Malaysia (SSM) for business compliance.)
License Name (Malay)
- Perjanjian Perundingan
Details
- The agreement specifies the scope of services, deliverables, and timelines.
- Includes payment terms, such as fixed fees, hourly rates, or milestone-based payments.
- Protects proprietary information and includes confidentiality clauses.
- Clearly defines the relationship between the consultant and the client, avoiding misclassification as an employee.
- Contains dispute resolution mechanisms and termination clauses.
Important Rules
- Both parties must agree on and sign the terms before commencing the consulting services.
- The scope of work must be clearly defined to prevent disputes.
- Payment terms and methods should comply with applicable financial regulations.
- Confidentiality and non-compete clauses must align with Malaysian laws.
- The agreement must comply with the Contracts Act 1950 and other relevant regulations.
Compound & Punishment
- Failure to honor the agreement may result in:
- Fines or monetary damages as outlined in the contract.
- Termination of the agreement and potential loss of business relationships.
- Breach of confidentiality or misuse of client information can lead to legal action and additional penalties under applicable laws, such as the Personal Data Protection Act (PDPA) 2010.
Advisor
Penny Lim , Legal Consulting
Ms. Penny is responsible for identifying possible legal issues and implementing solutions in the areas of government regulation, customer protection, and fair employment. Legal Counsel. Ms. Penny can advise on legal issues such as government and business permits, review legal documents before signing them, and complete legal research as needed by the company
Commonly Asked Questions
A consulting agreement is a contract between a consultant and a client that defines the services, fees, and responsibilities. It protects both parties from disputes. Conzlab helps draft clear and professional consulting agreements in Malaysia.
The cost of a consulting agreement in Malaysia varies based on the scope and complexity. Conzlab offers affordable and transparent pricing for businesses of all sizes.
Key terms include scope of work, payment, confidentiality, intellectual property, and termination clauses. Conzlab ensures all important terms are included to protect your business.
It should be used before starting any consulting project or service engagement to ensure both parties clearly understand their roles, responsibilities, and compensation terms.
Essential terms include the scope of services, duration, deliverables, payment schedule, confidentiality clause, intellectual property ownership, termination conditions, and dispute resolution procedures.
No. A well-drafted Consulting Agreement clearly states that the consultant is an independent contractor, not an employee, to avoid issues related to employment laws and benefits.
Payments can be fixed-fee, hourly-based, or milestone-based, depending on the project’s nature and duration. The payment terms should be detailed clearly to avoid disputes.
If either party breaches the contract, the affected party may seek remedies such as monetary damages, contract termination, or legal action under the Contracts Act 1950.
Yes. Confidentiality clauses protect sensitive business or client information shared during the engagement and are crucial to maintaining trust and legal compliance under the PDPA 2010.
No, registration is not required. However, depending on the industry, the agreement should comply with regulations from agencies such as KPDN (Ministry of Domestic Trade and Consumer Affairs) or SSM (Companies Commission of Malaysia).