When concluding a contract, it may be necessary to consider the application of non-circumvention clauses in order to avoid possible disputes or obstacles to a successful and long-term business relationship, especially if the parties do not know each other well and do not have an existing business relationship. In many business transactions, one party may present another party to its customers, suppliers or other high-value party during a transaction. By giving this exposure to a party, a company may fear being “excluded” from an agreement. That is precisely why the Non-Circumvention Agreement was created. A non-compete agreement may seem like a great way to protect your business from competition from independent contractors, but there can be legal challenges. Learn more about using these terms and conditions and contracts. The definition of the non-circumvention clause is something you need to know if you plan to work with a party you can`t fully trust.3 min read sponsorship agreements (or referral fees) – these agreements involve one party referring customers or customers to another party for a fee. If a referral fee is to be paid to the party who makes an introduction or discovers an opportunity that leads to a sale, a non-circumvention agreement can be used to ensure that the referring party is not excluded from the business. The lawyers who handle the requirements of the business contract are well placed to help you draft a non-circumvention agreement. If you need help today, publish a project to the ContractsCounsel marketplace to get quotes from approved lawyers for your project.

In this section, you can explain what kind of valuable information should be kept confidential between the parties. This is one of the main reasons why the agreement is created in the first place, so you need to be very specific. From the point of view of the party agreeing to comply with the non-circumvention obligations, the advantage for that party is the possibility of entering into a commercial transaction with the other party. By signing a non-circumvention agreement, the restricted parties undertake not to conspire among themselves to circumvent or exploit the protected party in their transactions. This type of agreement usually includes confidentiality and secrecy provisions to provide additional protection for your business. If the protected party`s business contacts are displayed to another party, the agreement ensures that the contacts remain confidential and that the recipient of the contact information does not bypass the protected party and interacts directly with the contacts. This section lists the penalties that apply if a party violates the terms of the Agreement. It can be adapted to your specific situation. A non-circumvention agreement serves the important purpose of protecting businesses from exploitation. It prevents one or more parties from being circumvented in a commercial transaction and deprived of full compensation for their efforts or involvement.

In addition, such an agreement ensures that the intellectual property that one company transfers to another party during the negotiations is not passed on to third parties. An insecure party may use a non-circumvention agreement to protect itself when it enters into an agreement with a particular party for the first time or when there is insufficient trust between the parties. This language binds all affiliates of the recipient and the disclosing party to the terms and conditions contained in this Agreement. This avoids a possible “loophole”. Brokers act on behalf of their clients and may not be perceived as much in some business transactions. For this reason, they are susceptible to cases of circumvention. Because of the small role agents can play in a business transaction, they protect themselves and their customers by entering into a non-circumvention agreement. A non-circumvention agreement is a contract designed to protect the parties involved in a transaction. Non-circumvention agreements are signed to prevent a company from circumventing or “bypassing” another company and to ensure that the company working for or with another company receives full compensation. Supply contracts – When entering into an essential supply contract, a non-circumvention clause can be used to ensure that the customer does not bypass the supplier by working directly with a wholesaler. Tim has over 20 years of experience representing a variety of emerging and established companies in the fields of technology, software, Bitcoin and professional services. He works directly with the officers and boards of directors of his clients in corporate, intellectual property and securities law.

Most recently, Tim has advised clients on Series A and Series B financing, corporate structuring, complex video licensing agreements and structuring new hedge funds. Previously, Tim served as General Counsel and Secretary of Forrester Research, Inc., where he served as General Counsel, led the company`s legal group, and led the company`s legal and regulatory affairs. Tim played a key role in the company`s IPO in 1997 and coordinated the secondary offering in 2000. He led the legal process in connection with the company`s acquisitions of Giga Information Group, Inc., Fletcher Research and Forit GmbH and oversaw more than $125 million in transactions. He also managed the company`s intellectual property. Tim is admitted to the Massachusetts and New York bar. .