Non Circumvention Agreements are essential tools in modern business transactions where valuable business relationships and opportunities are shared between parties. These agreements are particularly crucial in the United States business environment, where protecting business relationships and preventing unauthorized direct dealings is vital for maintaining fair business practices. The document is typically used when one party introduces business opportunities, contacts, or relationships to another party, and needs to ensure these introductions won't be circumvented. The agreement includes specific provisions about prohibited activities, duration of obligations, and remedies under U.S. law, making it especially relevant for business brokers, consultants, and intermediaries who facilitate business relationships and deals. The agreement's enforceability is supported by various U.S. federal and state laws, including trade secret protection and contract laws.
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1. Parties: Identifies all parties to the agreement, including full legal names and addresses
2. Background: Explains the context of the business relationship and purpose of the agreement
3. Definitions: Defines key terms used throughout the agreement, including 'Confidential Information', 'Business Relationship', and 'Circumvention'
4. Non-Circumvention Obligations: Core section detailing specific prohibited activities and direct/indirect circumvention restrictions
5. Term and Duration: Specifies how long the non-circumvention obligations remain in effect
6. Confidentiality Obligations: Details the obligations to maintain confidentiality of business relationships and opportunities
7. Permitted Activities: Clearly defines what activities are allowed to avoid overly restrictive interpretation
8. Breach and Remedies: Specifies what constitutes a breach and the available remedies, including injunctive relief
9. General Provisions: Standard contract clauses including governing law, jurisdiction, and entire agreement provisions
1. Commission Structures: Include when the agreement involves specific fee or commission arrangements for introduced business
2. Territorial Restrictions: Add when the non-circumvention obligations are limited to specific geographic areas
3. Non-Solicitation: Include when parties wish to prevent solicitation of employees or contractors
4. Audit Rights: Add for complex relationships where verification of compliance may be necessary
5. Dispute Resolution: Include detailed arbitration or mediation procedures if preferred over court litigation
6. Survival Clause: Add specific survival provisions if certain obligations should continue after termination
7. Assignment Rights: Include if transfer of rights needs to be specifically addressed or restricted
1. Schedule A - Protected Relationships: List of specific business relationships, contacts, and opportunities protected under the agreement
2. Schedule B - Restricted Activities: Detailed list of specifically prohibited activities and examples of circumvention
3. Schedule C - Commission Structure: Detailed breakdown of any fee or commission arrangements if applicable
4. Appendix 1 - Notification Requirements: Specific procedures and timeframes for required notices under the agreement
5. Appendix 2 - Authorized Representatives: List of individuals authorized to act on behalf of each party under the agreement
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