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Non-Circumvent Non-Disclosure Agreement

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NON-CIRCUMVENT NON-DISCLOSURE AGREEMENT

This Non-Circumvent Non-Disclosure Agreement (the "Agreement") is made as of by and between Disclosing Party: , with principal address at (hereinafter "Disclosing Party"), and Receiving Party: , with principal address at (hereinafter "Recipient"). Disclosing Party and Recipient may each be referred to individually as a "Party" and collectively as the "Parties."

RECITALS

WHEREAS, Disclosing Party possesses certain confidential, proprietary, or commercially sensitive information concerning its business opportunities, client relationships, introductions, trade contacts, financial terms, product or service specifications, and other information related to the purpose described below; and

WHEREAS, Recipient desires to receive certain Confidential Information for the limited purpose of evaluating or pursuing a potential business relationship, transaction or collaboration described as:

WHEREAS, the Parties desire to protect the confidentiality of such information and to prevent Recipient from circumventing Disclosing Party's business relationships, contacts, and introduced opportunities.

NOW, THEREFORE, in consideration of the mutual covenants and promises set forth herein, the Parties agree as follows:

1. DEFINITIONS

1.1 "Confidential Information" means all confidential or proprietary information disclosed, whether in writing, orally, visually, electronically, or by inspection, including but not limited to: business plans, financial information, customer and supplier lists, introductions, contact information, pricing, terms of proposed transactions, technical data, trade secrets, processes, and any information that a reasonable person would understand to be confidential under the circumstances. Confidential Information includes information disclosed by Disclosing Party's affiliates, agents, officers, directors, employees, representatives, and introduced third parties.

2. NON-DISCLOSURE AND NON-USE

2.1 Recipient shall hold all Confidential Information in strict confidence and shall not disclose, publish, or disseminate Confidential Information to any third party without the prior written consent of Disclosing Party, except as permitted in this Agreement. Recipient shall use Confidential Information solely for the Purpose described above and for no other purpose.

2.2 Recipient shall protect Confidential Information using the same degree of care it uses to protect its own confidential information, but in no event less than a reasonable degree of care. Recipient shall limit access to Confidential Information to its employees, officers, directors, attorneys, accountants, consultants, and agents who have a need to know and who are bound by confidentiality obligations at least as restrictive as those contained herein.

3. NON-CIRCUMVENT

3.1 Recipient acknowledges that Disclosing Party will introduce or disclose contacts, clients, suppliers, investors, or other third parties ("Introduced Parties") in connection with the Purpose. Recipient agrees that it shall not, directly or indirectly, circumvent, solicit, deal with, contract with, or attempt to contract with any Introduced Party for the purpose of obtaining any business, financial benefit, commission, fee, or other compensation without the prior written consent of Disclosing Party.

3.2 The non-circumvention obligations set forth in this Section shall apply to Recipient, its affiliates, agents, representatives, successors, assigns, and any entity formed or controlled by Recipient as a result of the Confidential Information.

3.3 The duration of the non-circumvent obligations shall be months from the date of the last disclosure of Confidential Information unless otherwise agreed in writing.

4. EXCEPTIONS

4.1 Confidential Information shall not include information that Recipient can demonstrate by competent evidence: (a) is or becomes generally available to the public through no breach of this Agreement by Recipient; (b) was rightfully in Recipient's possession prior to disclosure by Disclosing Party without obligation of confidentiality; (c) is lawfully received by Recipient from a third party without restriction and without breach of an obligation of confidentiality; or (d) is independently developed by Recipient without use of or reference to Disclosing Party's Confidential Information.

4.2 If Recipient is compelled by court order or other legal process to disclose Confidential Information, Recipient shall provide Disclosing Party with prompt written notice of such requirement to permit Disclosing Party to seek a protective order or other appropriate remedy, to the extent permitted by applicable law. If such protective order or remedy is not obtained, Recipient will disclose only that portion of the Confidential Information strictly required.

5. TERM AND TERMINATION

5.1 This Agreement shall commence on the Effective Date and continue until terminated by either Party upon thirty (30) days' prior written notice. Notwithstanding termination, Recipient's obligations with respect to Confidential Information disclosed during the term shall survive for years following the date of termination, or for such longer period as required by applicable law or as set forth in this Agreement.

6. RETURN OR DESTRUCTION

6.1 Upon written request of Disclosing Party, or upon termination of this Agreement, Recipient shall promptly return or, at Disclosing Party's option, destroy all documents and materials containing Confidential Information and shall certify in writing that it has complied with this obligation, except that Recipient may retain one archival copy solely for record-keeping and compliance purposes subject to the confidentiality obligations of this Agreement.

7. REMEDIES

7.1 Recipient acknowledges that monetary damages may be insufficient to remedy a breach of this Agreement and that Disclosing Party shall be entitled to equitable relief, including injunctive relief and specific performance, in addition to any other remedies available at law or in equity. Nothing in this Agreement shall be construed to require the posting of a bond as a condition for injunctive relief.

7.2 In the event of a breach of the non-circumvent obligations resulting in lost commissions, fees, or profits, Recipient shall be liable for all actual damages, and Disclosing Party shall be entitled to recover reasonable attorneys' fees, costs, and disbursements incurred in enforcing its rights under this Agreement.

8. REPRESENTATIONS AND WARRANTIES

8.1 Each Party represents and warrants that it has full power and authority to enter into this Agreement and to perform its obligations hereunder, and that the execution and delivery of this Agreement has been duly authorized by all necessary corporate or organizational action.

9. NO LICENSE; NO OBLIGATION TO TRANSACT

9.1 Nothing in this Agreement grants Recipient any rights in or to Confidential Information except as expressly set forth herein. Except as expressly provided, neither Party is under any obligation to enter into any transaction or business relationship as a result of the disclosure of Confidential Information.

10. NOTICES

10.1 All notices, requests, consents and other communications required or permitted under this Agreement must be in writing and delivered to the addresses set forth above by hand, commercial courier, or certified mail (return receipt requested) and shall be deemed given upon receipt.

11. AMENDMENTS; WAIVER

11.1 No amendment or modification of this Agreement shall be effective unless in writing and signed by authorized representatives of both Parties. No failure or delay by either Party in exercising any right shall operate as a waiver of that right, and a waiver of any breach shall not be construed as a waiver of any subsequent breach.

12. COUNTERPARTS; ELECTRONIC SIGNATURES

12.1 This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument. Signatures transmitted by electronic means, including facsimile or electronic signature platforms, shall be binding to the same extent as original signatures.

13. GOVERNING LAW

13.1 This Agreement shall be governed by and construed in accordance with the laws of the State of , without regard to its conflicts of law principles. The Parties submit to the exclusive jurisdiction of the state and federal courts located in said State for the resolution of disputes arising under this Agreement.

14. ENTIRE AGREEMENT; SEVERABILITY

14.1 This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior and contemporaneous oral or written agreements and understandings relating thereto. If any provision of this Agreement is held invalid or unenforceable by a court of competent jurisdiction, the remaining provisions shall remain in full force and effect and the invalid provision shall be reformed to the minimum extent necessary to make it valid and enforceable while preserving the Parties' intent.

15. MISCELLANEOUS

15.1 Neither Party may assign or transfer any rights or obligations under this Agreement without the prior written consent of the other Party, except to a successor in interest by merger or by acquisition of substantially all assets. All obligations herein binding upon the Parties shall inure to the benefit of their respective successors and permitted assigns.

Disclosing Party:

By:

Date:

Recipient:

By:

Date:

Enter text✕

What a Non-Circumvent Non-Disclosure Agreement Is

A Non-Circumvent Non-Disclosure Agreement (NCNDA) is a bilateral or multilateral contract that combines confidentiality obligations with a promise not to bypass intermediaries, agents, or introducers to deal directly with identified contacts or opportunities. It defines the confidential information scope, the non-circumvent period, permitted disclosures, and remedies for breach. NCNDAs are used when parties exchange leads, supplier lists, commission arrangements, or joint business opportunities and need both privacy and protection against circumvention of intermediaries.

Why use a Non-Circumvent Non-Disclosure Agreement

An NCNDA protects trade secrets and commercial relationships while documenting parties' consent to electronic execution. Under federal and state law, properly executed electronic NCNDAs meet ESIGN (15 U.S.C. ch. 96) and most states' adoption of UETA when intent, consent, attribution, and record retention are present.

Why use a Non-Circumvent Non-Disclosure Agreement

Who commonly uses this agreement and why it matters

Intermediaries, brokers, M&A advisors, joint-venture partners, and vendors use NCNDAs to protect introductions and compensate finders without risking direct circumvention.

  • Business brokers and finders protecting commission rights and lead lists
  • Corporate development teams safeguarding M&A or partnership introductions
  • Independent sales agents and suppliers preserving referral relationships

Drafting the NCNDA to reflect the deal structure and signatory authority reduces disputes over commissions, introductions, and scope of confidential information.

Primary signatories and their roles

Finder / Broker

An individual or firm that introduces a target or opportunity and expects compensation. The broker should be identified by legal name and state of registration; their rights to commissions and remedies for circumvention must be specified clearly.

Company / Counterparty

The recipient organization receiving confidential leads or contacts. Authorized signatories must have contract authority and obligations should include non-circumvention, non-disclosure, and acknowledgment of sourcing fees.

Core clauses to include in a professional NCNDA

An enforceable NCNDA is concise but precise. Include clauses that define parties, confidentiality scope, permitted disclosures, duration, remedies, and governing law to reduce ambiguity and support enforcement.

Parties

Full legal names and entity types for each party.

Confidentiality Scope

Specific categories of information and exclusions.

Non-Circumvention

Exact description of intermediaries, contacts, and prohibited conduct.

Term and Survival

Length of confidentiality and which obligations survive termination.

Remedies

Injunctive relief, damages, and fee-shifting provisions.

Governing Law

State law that will govern interpretation and enforcement.

Step-by-step: completing an NCNDA

Follow a clear sequence to prepare, execute, and retain the agreement to preserve enforceability and evidentiary value.

  • 01
    Prepare: Assemble party details and attach schedules.
  • 02
    Define Scope: Specify contacts and excluded parties.
  • 03
    Review: Legal review for remedies and jurisdiction.
  • 04
    Sign: Execute using acceptable e-signature methods.

Configuring an online signing workflow

Set up signer order, authentication, and notifications to create a clear record and reduce signer friction in digital execution.

Field Configuration
Signer Order Sequential or parallel as required by deal terms
Authentication Email link, SMS code, or advanced verification
Conditional Fields Show or hide clauses based on role selections
Reminders Automatic reminders and expiration settings

Technical considerations for eSigning and exchange

Choose a platform that preserves audit trails, supports PDF and DOCX formats, and offers signer authentication appropriate to transaction risk.

  • File Formats: PDF and DOCX supported
  • Integrations: Salesforce, NetSuite, Google Workspace
  • Audit Trail: IP, timestamp, and action log

Typical digital NCNDA execution flow

A structured digital workflow reduces errors and creates admissible records for dispute resolution.

  • Upload Document: Sender uploads the NCNDA file
  • Place Fields: Add signature, date, and initial fields
  • Send to Parties: Notify signers by email or link
  • Capture Audit Trail: Record timestamps and authentication

Typical timing and deadline items to note

Document key dates and notice periods clearly to reduce disputes and ensure timely enforcement or termination actions.

Effective Date:

The date obligations begin (MM/DD/YYYY).

Non-Circumvent Period:

Duration for which circumvention is prohibited.

Confidentiality Duration:

How long confidential data must be retained.

Notice Period:

Time required for termination or cure notices.

Dispute Window:

Time to raise claims after alleged breach.

Penalties and legal risks of an incorrect agreement

Contract Damages: Monetary awards for proven losses
Injunctive Relief: Court orders to stop circumvention
Fee-Shifting: Attorney fees where contract allows
Lost Commissions: Unpaid finder fees and consequential losses
Enforceability Risk: Vague scope can void remedies
Tax Reporting: Commission payments may trigger reporting

Common mistakes when preparing an NCNDA

  • Vague definitions of 'contacts' or 'opportunities' that invite differing interpretations and litigation.
  • Failing to specify the effective date or using inconsistent date formats that affect notice periods and statute calculations.
  • Not identifying authorized signers or failing to confirm corporate authority for entity signatories before execution.
  • Omitting remedies or specifying unenforceable penalty clauses that courts may refuse to enforce.

Practical tips to reduce disputes and preserve rights

Adopt clear drafting, consistent execution protocols, and robust recordkeeping to make enforcement straightforward if a dispute arises.

Define contacts precisely
List specific companies, individuals, or domains and include identifiers such as email addresses to reduce ambiguity and demonstrate which introductions are covered by the non-circumvent obligation.
Limit the scope and duration
Choose a non-circumvent period that is reasonable for the industry and transaction type; overly broad durations increase the risk of non-enforceability in court.
Document consideration
Record the specific consideration or commission formula and payment timing clearly to eliminate disputes over entitlement and to support tax and reporting obligations.
Preserve audit evidence
Use an e-signature platform that captures timestamps, IP addresses, and signer authentication logs to create an auditable chain of custody for the executed agreement.

Industry examples showing NCNDA use in practice

Real-world examples illustrate common NCNDA objectives: protecting introductions, preserving commissions, and enabling remote execution.

Optica Ventures — Broker Example

A small broker shared prospective investor contacts under an NCNDA to protect introductions and fees.

  • The agreement specified commission percentages and a 24-month non-circumvent period.
  • The clear contract terms and executed audit trail reduced dispute risk and supported collection when counterparties attempted direct contact.

Martin Properties — Real Estate Use

A property finder used an NCNDA when presenting off-market listings to buyers through an introducer.

  • The NCNDA defined excluded parties and fee triggers.
  • With clear definitions and digital execution, the finder substantiated entitlement to commissions and obtained an injunction to prevent circumvention.

Typical vendor pricing and capability snapshot for eSignature tools

Compare common pricing and capability criteria across vendors. signNow is listed first per comparison conventions; verify vendor plan details with each provider before purchase.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Varies by vendor Varies by vendor Varies by vendor Varies by vendor
Bulk Send Yes (plan dependent) Yes Yes Yes Varies by plan
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes (BAA available) Yes (BAA available) Yes (BAA available) No No
Envelope Cap No cap 100 envelopes/user/year Varies by plan Varies by plan Varies by plan

Common questions about Non-Circumvent Non-Disclosure Agreements

Answers to frequently asked practical and legal questions when preparing, signing, or enforcing an NCNDA in the United States.


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