What Is a Ncnd Agreement

November 3, 2021 7:07 pm Published by

A non-circumvention/non-disclosure agreement (NCNDA) is a legal contract between two parties that aims to protect confidential information and prevent circumvention of the agreement.

The agreement is commonly used in business transactions involving intermediary agents, brokers, or other third-party representatives. The NCNDA safeguards business interests by prohibiting the other party from disclosing or using confidential information for any purpose other than the intended transaction.

The NCNDA also includes a non-circumvention clause, which prevents the other party from bypassing the original party to deal with the parties involved in the business deal directly. This clause is meant to protect the intermediary from losing their commission or fees as a result of being bypassed.

The NCNDA is a standard document in international trade and is used by buyers, sellers, intermediaries, and brokers. It is also commonly used in real estate transactions, where the intermediaries play a major role in facilitating deals between buyers and sellers.

The NCNDA has several components, including non-disclosure, non-circumvention, and non-use clauses. These clauses detail how the confidential information is to be protected and how it can be shared among the parties. The agreement specifies what information is confidential, how it is to be used, and how long it is to be protected.

The NCNDA is legally binding, and any breach of the agreement can have legal consequences. In case of a breach, the parties involved can sue for damages and seek an injunction against the party in violation.

In conclusion, the NCNDA is a vital legal document that plays a significant role in protecting confidential information and ensuring a fair deal for all parties involved in a business transaction. It is important to seek legal counsel before signing any NCNDA to fully understand its terms and implications.

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