Commercial Contracts in Malaysia

Commercial Contract

Protect your business and enable it to prosper.

Commercial Contract Drafting Services in Malaysia

Bringing Protection And Certainty.

Sabrina Hashim & Co delivers commercial contract and agreement services to assist you with successful commercial contracts that holistically protect your interests. It is imperative for businesses to make sure that their commercial contracts are meticulously crafted and reviewed before signing.

Commercial contract lawyers in Malaysia you can trust.

About Sabrina Hashim & Co

Sabrina Hashim & Co is a registered law firm in Kuala Lumpur and Selangor, Malaysia, specialising in three practice areas. Catering to your specific needs, we deliver effective legal solutions to ensure the smooth functioning of your business, ease your workload and elevate your business growth.

Malaysia commercial contract

What Is A Commercial Contract in Malaysia?

The very foundation of your business.

A commercial contract is a legally enforceable agreement between two or more parties for the purpose of a business transaction, usually the sale of a specific item or service. The contract specifies the terms and conditions of the agreement. It outlines what all parties must do in order for the contract to remain legal, as well as the consequences if any party fails to adhere to the agreement.

The Benefits of Commercial Contracts

A crucial document to a business’s success.

A well-drafted commercial contract in Malaysia provides business owners with many benefits, such as:
  • Clarity in business relationships, agreements, and rights of parties
  • Preventing misinterpretation of communications and agreements
  • Protecting intellectual property, real property, and asset values
  • Detailing the necessary steps to take for resolving disputes
  • Documentation to allow comprehensive representation and review by an experienced business lawyer

Commercial Contract Drafting Services

Our broad contracting experience includes:
  • Software license agreement
  • Shareholders agreement
  • Purchase and supply agreement
  • Business purchase agreement
  • Joint venture agreement
  • Sale and distribution agreement

Meeting Your Commercial Contractual Requirements

Minimising contract risks and disputes.

At Sabrina Hashim & Co, we are committed to providing reliable legal support for our clients. We impose strict measures to deliver better, satisfying results. Our stages of the contracting process are as follows:



Time to plan how to manage your commercial agreements, assign responsibilities, and determine resources to guarantee the contract’s obligations are satisfied.



Realising your plan by putting in the work and ensuring you have provided the information to structure the terms of the commercial contracts.



New contracts are meticulously written, analysed, and signed. Each contract must contain all of the relevant terms and conditions.



Ensure that the legal department or contract manager understands all objectives, obligations, and other contract matters to manage the contract after the contract is signed.



The start of the active period of the agreement (parties involved must perform according to the agreed terms).

Consult An Experienced Commercial Contract Lawyer

Talk to us and we will provide you with the right solutions for your legal challenges or needs.

Commercial Contract Malaysia - FAQ

A commercial contract in Malaysia should explicitly depict the terms and conditions of the particular transaction. For instance, a commercial contract should include:
  • Amount of goods to be provided
  • Nature of services to be provided
  • Amount of compensation entitled by the seller
  • Consequences if either party fails to fulfil their obligations

The subject matter of a commercial contract written by law firms in Malaysia differs from one contract to another. However, listed below are 7 important clauses commonly found in commercial agreements:

  • Parties and purpose of the contract: identity and full legal names must be specified, along with the statement of obligation and subject matter of the transaction
  • Termination triggers: to enable parties to terminate the contract
  • Damages: a clause stating the predetermined amount to pay if a party fails to perform
  • Dispute resolution: inclusion of an agreed procedure to settle any contract
  • Force majeure: to protect parties from unprecedented circumstances such as a natural catastrophe
  • Confidentiality: to prevent unauthorised access and keep information private and confidential
  • Jurisdiction: an explicit statement of the state of jurisdiction to clarify which laws are enforceable

There is no legal requirement for a commercial contract in Malaysia to be in writing - it can be verbal or implied as well as documented. However, if misunderstandings arise when details of the arrangement are not written down, you will have nothing to fall back on.

Our commercial lawyers strongly recommend that your commercial contracts are in writing so that you have proof of what was previously agreed upon.

The parties involved in a contract can terminate it, even if there is no clause saying so. However, reasonable notice must be given—and if there is a dispute about the terms of that notice, its reasonableness will be decided by a court.
‘Good faith’ is defined as honesty in a person’s conduct during an agreement. For example, involved parties cannot:
  • Lack of accountability in their performance
  • Act with malicious intent that disrupts the other party’s performance
  • Abuse their power when specifying the conditions of a contract