Non-Circumvention Clause

Non-Circumvention Clause

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Last updated December 2018
Last updated April 14, 2021
Suitable for all Australian states and territories
Suitable for all Australian states and territories

This Circumvention Clause 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.

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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.

Use this Circumvention Clause 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 Circumvention Clause 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 Circumvention Clause include:

  • Non-disclosure Agreement;
  • Non-circumvention Agreement; and
  • Non-circumvention Provision;

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