Service Agreement

Description

• A Service Agreement is a legally binding contract between a service provider and a client that outlines the terms and conditions for providing specific services. It ensures clarity on deliverables, timelines, payment terms, and other obligations, protecting the interests of both parties.

GOV Department

• (Depends on the nature of services, e.g., Ministry of Domestic Trade and Consumer Affairs (KPDN) or Suruhanjaya Syarikat Malaysia (SSM) for general business compliance.)

License Name (Malay)

• Perjanjian Perkhidmatan

Details

• Clearly defines the scope of services, timelines, and deliverables.
• Includes payment terms, such as fees, billing cycles, and penalties for late payment.
• Outlines the responsibilities and rights of both the service provider and the client.
• Includes clauses for confidentiality, dispute resolution, and termination of the agreement.
• Ensures compliance with the Contracts Act 1950 and other relevant regulations.

Important Rules

• The agreement must be signed by both parties to be enforceable.
• The scope of services and deliverables must be explicitly detailed to prevent disputes.
• Payment terms must comply with applicable financial and taxation regulations.
• Confidentiality clauses must protect sensitive information shared during the service period.
• Any amendments to the agreement must be agreed upon by both parties and documented.

Compound & Punishment

• Breach of the Service Agreement may result in:
  • Legal action for damages or compensation by the aggrieved party.
  • Termination of the agreement and potential reputational damage.
• Failure to comply with regulatory requirements may lead to fines or penalties under applicable laws, such as the Personal Data Protection Act (PDPA) 2010 for confidentiality breaches.

Advisor