Consulting Agreement

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