Free non circumvention agreementJune 17th, 2023
FiledJune 17th, 2023The purpose of a non-circumvention (or non-circumvent) agreement is to prevent one or more parties from being passed over in a transaction, leaving them without full compensation for their labor or involvement. A nervous party typically introduces a non-circumvention agreement when either it is working with another party for the first time, there is little trust between the parties, or both. In short, by signing a non-circumvent agreement, certain parties (the restricted parties) enjoin themselves from conspiring with each other to cut out a third party (the protected party) from their dealings. Joint Ventures One common situation in which circumvention might become an issue is when three or more parties create a joint venture (see Five Questions to Ask Before Forming a Joint Venture and How Do I Start a Joint Venture?). Depending on the different roles of each party, one party might feel relatively dispensable when it comes to moving the transaction forward. As an example, this situat