Supplier/Vendor Agreement

Description

• A Supplier/Vendor Agreement is a legally binding contract between a company and its supplier or vendor that outlines the terms and conditions for the supply of goods or services. It ensures clarity on pricing, delivery schedules, quality standards, and responsibilities, protecting the interests of both parties.

GOV Department

• (Dependent on the industry, e.g., Ministry of Domestic Trade and Consumer Affairs (KPDN) or Suruhanjaya Syarikat Malaysia (SSM) for compliance.)

License Name (Malay)

• Perjanjian Pembekal

Details

• Specifies the type of goods or services to be supplied, delivery timelines, and quality standards.
• Includes payment terms, such as pricing, invoicing, and penalties for late payment.
• Covers responsibilities for handling defective goods or service failures.
• Includes confidentiality, termination clauses, and dispute resolution mechanisms.
• Ensures compliance with industry-specific regulations and the Contracts Act 1950.

Important Rules

• The agreement must be signed by both parties to be enforceable.
• All terms related to delivery, payment, and quality must be explicitly defined.
• Any changes to the agreement must be mutually agreed upon and documented.
• Suppliers/vendors must adhere to the agreed quality standards and delivery timelines.
• The agreement must comply with applicable Malaysian laws, including trade and consumer protection regulations.

Compound & Punishment

• Failure to comply with the terms of the agreement may result in:
  • Financial penalties or compensation claims for damages caused.
  • Termination of the agreement and loss of business relationships.
• Breach of confidentiality or misrepresentation can lead to:
  • Legal action under the Contracts Act 1950.
  • Fines or imprisonment for severe breaches of trade regulations.

Advisor