Non-Circumvention Agreement
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This non-circumvention agreement template ensures that third parties do not avoid the introducing party in order to secure a transaction, relationship, or financial benefit without proper authorization or compensation. This document is ideal for contractors and professionals across the U.S.
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What is a non circumvention agreement?
A non circumvention agreement is a legal contract that aims to protect a party that introduces business contacts, clients, investors, or opportunities to another party. This is one of the most popular types of business contracts, which is usually being used in conjunction with non-compete or confidentiality agreements.
The main purpose of a non-circumvention agreement is to prevent one party from bypassing the introducer and dealing directly with third parties without permission.
The parties to an NDA non circumvention agreement template are:
- Protected party. This is a business or individual who has significant professional or business connections in a specific industry and is ready to share their contacts, clients, or other opportunities with a restricted party. Upon successful completion of a transaction between that third party and a restricted party, a protected party usually earns an agreed amount of a commission. This is especially the case for broker contracts or professional intermediary services.
- Restricted party. This is a business or individual that needs to get professional or business connections and opportunities.
Who shall use this agreement?
This non circumvention agreement template is the ideal solution for:
- brokerage and intermediary services providers;
- consultants and service providers;
- business founders and investors;
- small and medium-sized entrepreneurs.
What to include in a non circumvention agreement template?
Creating a non circumvention agreement template could be a simple and straightforward task if you know what to do. We’ve got you covered. Below we made a short list of all essential elements a simple template must have.
- Party Details. The text of every non-circumvention agreement shall define identification details of both parties. Those details must include full name, mailing or business address, and contact email.
- Purpose of the Agreement. The main part of every non circumvention agreement template is to define the purpose for which parties need this document. Usually parties enter this type of a contract because of signing various types of services agreements, running business together, or entering transactions. Thus, the document’s template shall clearly define from which risks a protected party shall be protected.
- Duration. A solid template of a non-circumvention agreement shall define its duration, which includes the start date of the provision of services and the end date. Usually those types of contracts are concluded on an indefinite basis, which means that the document can be terminated by both parties in writing anytime.
- Amendment. If either party wishes to change provisions of this contract, the two conditions should be met. First, any changes shall be made in a written form, usually as a separate amendment agreement. Second, both parties shall agree to those changes by signing an amendment agreement.
- Severability. A non circumvention agreement sample is an independent contract, which basically means that it survives the termination or expiration of the main contract concluded earlier between the parties. For example, if parties first enter a broker agreement and then sign the present contract, even if a broker agreement expires or automatically ends, it does not affect the validity of the present non circumvention agreement.
How to customize a non circumvention agreement at FasterDraft?
To get a fully customized document template, follow the instructions given below:
- Click the Create Document button.
- Answer simple questions in the form.
- Select a template’s format – non circumvention agreement PDF or Word.
- Make a payment.
- Download, print out, and make both parties sign this agreement. Once parties put their signatures, your document is ready to be used.
Table of content
Frequently Asked Questions (FAQ)
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1. What is the difference between non disclosure and non circumvention agreement?
A good non circumvention agreement example provides a restriction for one party to bypass, circumvent, or take advantage of any protected opportunity in a business introduced by another party.
For example, Jack is a sales broker and introduces Chris, a potential buyer, to his client. In that case Jack wants to have a non-circumvention agreement sample to prevent his client from directly contacting Chris.
In the case of a non-disclosure agreement, one party to an existing contract wishes to protect their sensitive information from potential disclosure to third parties.
For instance, Jack enters an accounting services agreement with an accounting firm. In its turn an accounting firm wants to hire a subcontractor to provide requested services. Jack insists on signing a confidentiality agreement to ensure that his confidential information won’t be disclosed to third parties, including subcontractors.
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2. Is a non circumvention agreement legally enforceable?
Yes, once signed by both parties, a non-circumvention agreement becomes legally enforceable. It means that when one party violates provisions of the existing contract, another party can bring this case to the court.
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3. Can this non circumvention agreement template be used for international deals?
Yes, this non circumvention agreement template could be used to protect either party against circumvention or bypassing their business interest in both domestic and international transactions. However, please note that the present template is drafted in accordance with effective requirements of the U.S. federal and state laws. It means that in case of a dispute between the parties, the local state courts in the U.S. shall have an exclusive jurisdiction to decide on such a case.
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4. How does a broker non circumvention agreement template protect commissions?
In a broker non circumvention agreement template, a client is prohibited from contacting directly or indirectly, hiring, or soliciting a third party who was introduced by a broker before.
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