Non circumvention

A non-circumvention clause is a contractual provision designed to prevent one party from bypassing the other party to engage directly with third parties in a business arrangement, thereby ensuring that the originating party retains their negotiated advantage and relationship benefits. Typically included to safeguard confidential information and business opportunities, this clause is crucial in agreements where parties seek to protect their interests and ensure equitable dealings.

16 Non circumvention examples

  • Description
    Non-Circumvention.  ASD and its members Kevin and Jenny Thomas agrees to Non-Circumvention so long as the Agreement is in effect, and for one year after termination, and in any case ASD agrees to Non-Circumvention during the period before April 30,2023, even if this Agreement had been terminated before then but only for cause.
    Document
    ALPINE 4 HOLDINGS, INC. (ALPP)
  • Description
    Mutual Non-circumvention The Company and the Consultant agree to a mutual non-circumvention on all aspects of the business. The Company, its representatives, and other consultants agree not to approach parties introduced by Consultant, on behalf of other companies with which they may be involved, without permission and involvement of Consultant. The Company agrees that the list of contacts introduced by Consultant shall be deemed confidential, and shall not be disclosed in part or in whole by another party without Consultant’s express permission. The Consultant agrees to the exact same non-circumvention provisions as it pertains to anyone that the Company introduces to the Consultant and the Consultant is bound by the same non-circumvention provisions that the Company has agreed to as described in this paragraph.
    Document
    Synergy CHC Corp.
  • Description
    Non-Disclosure Agreement. As further consideration for the Company's entering into this Agreement, Distributor understands and agrees that Distributor, including its affiliates, shall continue to be bound by that certain Non-Disclosure and Non-Circumvention Agreement between the Company and Distributor, dated of even date herewith (the "Non-Circumvention Agreement").
    Document
    BLACK BIRD POTENTIALS INC.
  • Description
    Thus, the Non-Circumvention Agreement provided, in pertinent part, that: “The Parties agree not to disclose, reveal or make use of any information during discussion or observation regarding methods, concepts, ideas, products/ services, or proposed new products or services, nor to do business with any of the revealed contacts without the written consent of the introducing party or parties. This includes the security and integrity of the disclosing parties [sic] crucial business information, customers, process, and procedures including trade and brand names and all copyrighted material.”
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    HIMALAYA TECHNOLOGIES, INC (HMLA)
  • Description
    The NC/NDA also provided a “penalty” provision as protection to the Plaintiff to ensure that Defendant NSAV did not “circumvent” its obligations to compensate Mr. Grover for his efforts and network of contacts in the investment community. As a result, the Non-Circumvention Agreement further provided, in pertinent part, as follows: “In case of circumvention …, the Parties agree and guarantee that they will pay a legal monetary penalty that is equal to the commission or fee the circumvented Party should have realized in such transactions, by the person(s) engaged on the circumvention on each occurrence, or the gross revenue realized by the circumventing party in each instance[,] whichever is greater. If either party commences legal proceedings to interpret or enforce the terms of THIS AGREEMENT, the prevailing Party will be entitled to recover court costs and reasonable attorney’s fees.”
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    HIMALAYA TECHNOLOGIES, INC (HMLA)
  • Description
    Pursuant to the Non-Circumvention Provision, during the Term and for a period of 12 months from the date of termination of the Agreement for any reason, the Contractor shall not solicit on behalf of any other entity, any Target with which officers or directors of the Company met (in person or by videoconference or teleconference) for purposes of effecting a Transaction with, or other substantial strategic investment into such Target with any entity other than the Company, unless given explicit written authorization to do so by the Company’s chief executive officer or chief financial officer.
    Document
    Cascade Acquisition Corp (CAS, CAS-UN, CAS-WT)
  • Description
    Non-Circumvention. ABTI hereby agrees that from the effective date of this Letter of Intent that it shall not negotiate, enter into or attempt to negotiate or enter into any agreement, covenant or understanding, written or oral, directly or indirectly, that could in any manner be construed to be inconsistent with this Letter of Intent or could undermine any of the rights or interests of the other party in, under or in respect of this Letter of Intent and agrees not to interfere with, circumvent, frustrate or otherwise impede in any manner the realization by the other party of any of the objectives it seeks or benefits derived, or to be derived, from any of the foregoing. ABTI further agrees that, for a period of two years from the effective date of this Letter of Intent, that it shall not, directly or indirectly through an affiliate, solicit, discuss, pursue, or enter into any transaction or agreement with any person (including any firm, partnership, or other entity) directly or indirectly introduced to it by BGXX without in each case the prior written consent of BGXX, which consent may be given or withheld in its discretion and may be conditioned on payment of a transaction fee.
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    ALTEROLA BIOTECH INC. (ABTI)
  • Description
    Non-Disclosure Agreement. As further consideration for the Company’s entering into this Agreement, Distributor understands and agrees that Distributor, including its affiliates, shall continue to be bound by that certain Non-Disclosure and Non-Circumvention Agreement between the Company and Distributor of even date herewith (the “Non-Circumvention Agreement”).
    Document
    Digital Development Partners, Inc. (DGDM)
  • Description
    Scope of Confidentiality and Non-Circumvention. It is not necessary that this Agreement reference specific transaction(s) in order to be effective with regards to confidentiality and non-circumvention since this Agreement is intended to be a continuing obligation between the Parties as to all Information communicated until notice of termination is acknowledged by the both of them.
    Document
    Cosmos Holdings Inc. (COSM)
  • Description
    Non-Circumvention. LMI and the Company agree not to circumvent each other and shall abide by business principles regarding non-circumvention. No party to this agreement shall in any way whatsoever circumvent or attempt to circumvent the other by entering into any negotiation or dealing with business contact associates or partners of the other party with whom they might have become acquainted in the course of the implementation of this Agreement, without the written consent of the other party concerned. The parties agree to keep confidential the names of any contacts introduced or revealed to the other party, and that their firm, company, associates, corporations, joint ventures, partnerships, divisions, subsidiaries, employees, agents, heirs, assigns, designees, or consultants will not contact, deal with, negotiate or participate in any transactions with any of the contacts without first entering a written agreement with the disclosing party unless that party gives prior written permission. Such confidentiality will include any names, addresses, telephone, telex, facsimile numbers, and/or other pertinent information disclosed or revealed to either party.  
    Document
    Cannaisseur Group Inc. (TCGI)
  • Description
    Non-Circumvention: During the Term of this Agreement, as well as any Renewal Term thereof, and for a period of eighteen (18) months following the Termination or Termination For Cause of this Agreement, the Parties hereto, corporately, individually and personally, and as to their respective directors, officers, employees and agents, agree not to directly or indirectly, for themselves or any other individual or entity, consult for, sell for or to, market for or to, refer to, any party with whom the other Party may have a business relationship, including but not limited to the representation of a third-party seeking to solicit a business relationship therewith.
    Document
    LUDWIG ENTERPRISES, INC. (LUDG)
  • Description
    Non-circumvention   Each Party agrees not to transact business or attempt to transact business with any third-party whose identity or contact information is made known to another Party pursuant to this Agreement without the express written permission of such Party providing the information. The Parties further agree not to circumvent, avoid or bypass the other, directly or indirectly in anyway with regard to a transaction with a third-party that becomes known to a Party through Confidential Information. This non-circumvention shall include, but not be limited to, any transaction arising out of the Parties’ discussions pursuant to this MOU.
    Document
    C3 Capital, Inc.
  • Description
    Non-Circumvention. It is hereby agreed that the Manager will not circumvent GreenPower in any of its business dealings or transactions.
    Document
    GREENPOWER MOTOR Co INC. (GPVRF)
  • Description
    Non-Circumvention. Each Party agrees that it shall not attempt in any way to directly or indirectly circumvent the other Party in contacting, conducting or concluding any business with any revealed contacts, clients or entities (including without limitation, identities of, and contact information for: suppliers, manufacturers of equipment, partners, licensors, prospective investors, or prospective investments). This non-circumvention obligation shall apply to the Parties and their representatives and shall remain in effect until one (1) year from the date or dates the information creating such obligation was revealed.
    Document
    LOGIQ, INC. (LGIQ)
  • Description
    Non-Circumvention. (a)    The Seller agrees not to contact or initiate contact at any time for any purpose, either directly or indirectly, in connection with the RH Concept or Supernus Products, or any other property or properties whose identity was revealed through the efforts of the Company (or its subsidiaries or affiliates), unless such approval is specifically granted in written form by Company on a case-by-case basis. The Seller further agrees not to undertake any transaction or a series of transactions of any kind in connection with any Company Opportunity (hereinafter defined) or to collect any fees in connection with a Company Opportunity without the express prior written consent of Company, which consent may be withheld in Company’s sole discretion. (b)    The term “Company Opportunity” means and includes each and every business opportunity that is within the scope and purpose of the RH Concept or Supernus Products.
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    SUPERNUS PHARMACEUTICALS, INC. (SUPN)
  • Description
    Non-Circumvention and Non-Solicitation. a. Non-Circumvention. The Buyer agrees not to contact persons or entities introduced by the Company without the prior written consent of the Company. Furthermore, the Buyer agrees that the Buyer shall not utilize confidential information nor consummate any transaction, for fees or otherwise, with any entity (including such entity's affiliates and related entities) introduced by the Company without providing compensation to the Company in an amount deemed acceptable to the Company at the Company‘s sole discretion. The provisions of this Subsection shall apply during the term of this Agreement and for two (2) calendar years thereafter.
    Document
    LM FUNDING AMERICA, INC. (LMFA)

What is Non-Circumvention?

Non-circumvention refers to a legal agreement or clause designed to prevent parties involved in a negotiation or partnership from bypassing each other to engage directly with third parties for mutual benefits. Primarily used in business dealings, a non-circumvention agreement ensures that the parties maintain ethical business practices and respects the defined boundaries and roles outlined in a business relationship.

When Should I Use a Non-Circumvention Clause?

A non-circumvention clause is crucial when:

  • Entering into a partnership where both parties bring unique contacts, vendors, or suppliers to the table.
  • Collaborating with intermediaries, brokers, or agents in order to protect their interests and commissions.
  • Sharing sensitive business information or contacts with new partners or entities.
  • Conducting business internationally where local partners have specific market access and information.

How Do I Write a Non-Circumvention Clause?

Writing a non-circumvention clause involves clear, precise language that covers all possible scenarios of the relationship. Essential elements include:

  • Clearly defining the parties involved.
  • Specifying the duration of the agreement.
  • Listing any exceptions or exclusions.
  • Outlining the penalties for breach of contract.
  • Including confidentiality provisions if sensitive information is exchanged.

Example:

“Party A agrees not to engage in, execute, or pursue any business transaction with any third-party (introduced by Party B) that may circumvent, or attempt to circumvent, Party B’s rightful business interests. This agreement remains in effect for a period of two years from the date hereof. Any violation will result in [penalties].”

Which Contracts Typically Contain a Non-Circumvention Clause?

Non-circumvention clauses are found in a variety of contracts, including:

  • Joint Venture Agreements: To prevent partners from independently exploiting shared contacts.
  • Confidentiality Agreements: Especially where sensitive business contacts are disclosed.
  • Brokerage Agreements: To ensure brokers receive due compensation for their services.
  • Consulting Contracts: To protect consultants presenting new opportunities or connections.
  • International Trade Agreements: To preserve the local partner’s interests from any bypass.

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