Non-Circumvention Agreement
This Non-Circumvention Agreement is a legally binding agreement that is established to prevent a business from being bypassed or circumvented by other parties involved in a business deal.
3.7 (3 reviews)
Last updated December 19, 2024
Under 5 minutes
Suitable for Australia
Written by
Edwin Montoya Zorrilla
Reviewed by
Damin Murdock
Document Overview
This document ensures that the business will receive full compensation for its contribution. By signing a non-circumvention agreement, the restricted party agree to refrain from conspiring with each other to circumvent the protected party in their dealings. After all the parties sign the contract, any party who violates the terms of the agreement will be liable to pay a penalty equal to the amount the protected party would have received if the agreement had not been violated.
A written record can help protect a business if any questions or legal issues arise regarding the potential violations. It is recommended that you seek legal advice before signing a non-circumvention agreement to understand its legal consequences.
The Legal Risk Score of a Non-Circumvention Agreement Template
Our legal team have marked this document as low risk considering:
- The document introduces a non-circumvention clause that restricts parties from engaging in certain business activities, which could limit opportunities for collaboration or expansion with new partners in related fields.
- The amendment process outlined in the document lacks detailed procedural steps, which might lead to ambiguities or misunderstandings about how changes should be implemented effectively.
- The agreement does not specify the consequences or remedies if the non-circumvention clause is breached, potentially leaving parties without clear recourse in the event of a violation.
Non-Circumvention Agreement Checklist
Complete your free Non-Circumvention Agreement with our checklist
Ensure Proper Execution
Ensure that all parties sign the document as indicated by the placeholders for "Signature" to formally execute the agreement.
Verify Amendment Incorporation
Check that the amendment, specifically the addition of clause 3 regarding non-circumvention, is properly incorporated into the Original Agreement as stipulated.
Monitor Compliance
Regularly review the activities of related bodies to ensure they are not engaging in any business that competes with the interests protected under the non-circumvention clause.
Document Duration Awareness
Be aware of the time frame specified in the non-circumvention clause to ensure all parties adhere to the terms during the relevant period.
Use this Non-Circumvention Agreement if:
- You would like to refrain the other party from circumventing or taking advantage of your business in the dealings;
- You want to follow all the proper processes in protecting your contribution in a business deal; and
- You would like to have a record of the agreement in the event of any legal action.
What does the Non-Circumvention Agreement cover?
- Documents the number of years the agreement will be valid;
- Informs the parties of the availability or unavailability of automatic renewal following the completion of the transactions; and
- Sets out the methods of handling term amendments.
Other names for Non-Circumvention Agreement include:
- Non-disclosure Agreement;
- Non-circumvention Agreement; and
- Non-circumvention Provision;
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