Non Circumvention Agreement Template for United States

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Key Requirements PROMPT example:

Non Circumvention Agreement

"I need a Non Circumvention Agreement to protect my technology company's business relationships when working with overseas manufacturers in Asia, specifically covering the protection of our client list and preventing direct contact between our manufacturers and clients for a period of 5 years starting January 2025."

Document background
Non Circumvention Agreements are essential tools in modern business transactions where parties share valuable business relationships and opportunities. These agreements are particularly crucial in the United States, where business relationships and opportunities are protected under various federal and state laws. The agreement typically includes provisions about confidentiality, duration of obligations, geographical scope, and remedies for breach. It's commonly used when introducing business opportunities, during negotiations, or when sharing valuable contacts and relationships that could be circumvented.
Suggested Sections

1. Parties: Identifies all parties to the agreement, including full legal names and addresses

2. Background/Recitals: Explains the context and purpose of the agreement, including the business relationship between parties

3. Definitions: Defines key terms used throughout the agreement, including 'Confidential Information', 'Business Opportunity', and 'Circumvention'

4. Non-Circumvention Obligations: Core provisions detailing the specific activities prohibited and obligations of each party

5. Term and Duration: Specifies how long the agreement remains in effect

6. Confidentiality Obligations: Details the handling and protection of confidential information shared between parties

7. Breach and Remedies: Outlines consequences of breach and available remedies

Optional Sections

1. Commission Structures: Details fee arrangements if applicable to the business relationship

2. Geographic Scope: Defines territorial limitations of the agreement

3. Non-Solicitation: Prevents parties from soliciting each other's employees or clients

4. Alternative Dispute Resolution: Specifies mediation or arbitration procedures

Suggested Schedules

1. Schedule of Protected Relationships: Lists specific business relationships, contacts, or opportunities protected under the agreement

2. Schedule of Excluded Relationships: Lists any pre-existing relationships or opportunities excluded from the agreement

3. Commission Structure Schedule: Detailed breakdown of any commission or fee arrangements

4. Authorized Representatives: List of individuals authorized to receive or handle protected information

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Industries

Federal Trade Secret Laws: Including the Defend Trade Secrets Act (DTSA) of 2016 and Economic Espionage Act of 1996, which provide federal protection for trade secrets and confidential information

State Trade Secret Laws: Uniform Trade Secrets Act (UTSA) as adopted by individual states, along with state-specific variations for trade secret protection

Contract Law: State-specific contract laws covering consideration requirements, formation, enforcement, duration of restrictions, and reasonableness of terms

Competition Laws: Federal antitrust laws including Sherman Antitrust Act and Clayton Act, along with state-specific competition regulations

Employment Law: Employment-related restrictions and state-specific regulations regarding non-compete agreements and employment relationships

Statute of Frauds: Legal requirements for written agreements and contract duration specifications

Legal Remedies: Available remedies for breach of agreement and enforceability of liquidated damages clauses

Constitutional Considerations: First Amendment issues and interstate commerce regulations that may affect the agreement

Industry-Specific Regulations: Specific regulatory requirements depending on the business sector involved in the agreement

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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