The Non-Circumvention Agreement is essential in Saudi Arabian business transactions where parties need to protect their business relationships, contacts, and opportunities from being circumvented or bypassed. This document is particularly crucial in industries where intermediaries play significant roles or where valuable business connections need protection. The agreement must comply with Saudi Arabian law, including both Sharia principles and modern commercial regulations, making it enforceable in Saudi Commercial Courts. It typically includes detailed provisions about protected relationships, prohibited activities, duration of obligations, and consequences of breach. The document is commonly used in international business dealings, mergers and acquisitions, consulting arrangements, and other commercial transactions where protecting business relationships is paramount.
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1. Parties: Identification of all parties to the agreement with full legal names and addresses
2. Background: Context of the business relationship and purpose of the agreement
3. Definitions: Definitions of key terms including 'Confidential Information', 'Business Opportunity', 'Circumvention', and 'Legitimate Business Relationship'
4. Scope of Agreement: Clear delineation of protected business relationships and opportunities
5. Non-Circumvention Obligations: Core obligations not to circumvent the other party in business dealings or relationships
6. Direct/Indirect Dealings: Prohibition on both direct and indirect circumvention attempts
7. Duration: Term of the agreement and survival of obligations
8. Confidentiality Obligations: Requirements for maintaining confidentiality of business relationships and opportunities
9. Permitted Activities: Clear statement of activities that are allowed despite non-circumvention obligations
10. Breach and Remedies: Consequences of breach and available remedies including compensation
11. Governing Law and Jurisdiction: Specification of Saudi law as governing law and jurisdiction of Saudi courts
12. Notices: Process and requirements for giving formal notices under the agreement
13. General Provisions: Standard boilerplate clauses including severability, entire agreement, and amendments
1. Specific Industry Provisions: Additional provisions specific to particular industries (e.g., real estate, technology, trading)
2. Commission Structures: Details of commission arrangements where relevant to protected business relationships
3. Non-Solicitation: Additional provisions preventing solicitation of employees, clients, or suppliers
4. Dispute Resolution: Alternative dispute resolution mechanisms such as arbitration or mediation
5. Territory Restrictions: Geographic limitations on non-circumvention obligations
6. Shariah Compliance Declaration: Explicit statement of compliance with Islamic law principles
7. Force Majeure: Provisions for unforeseen circumstances preventing performance
1. Schedule 1 - Protected Relationships: List of specific business relationships covered by the agreement
2. Schedule 2 - Protected Opportunities: Description of specific business opportunities protected under the agreement
3. Schedule 3 - Authorized Representatives: List of individuals authorized to act under the agreement
4. Schedule 4 - Commission Structures: Detailed breakdown of any agreed commission structures
5. Appendix A - Confidentiality Terms: Detailed confidentiality obligations and procedures
6. Appendix B - Reporting Requirements: Forms and procedures for required reporting under the agreement
Authors
Relevant legal definitions
Clauses
Relevant Industries
Financial Services
Real Estate
International Trade
Manufacturing
Technology
Professional Services
Construction
Energy
Healthcare
Telecommunications
Investment Banking
Consulting
Import/Export
Oil & Gas
Relevant Teams
Legal
Business Development
Commercial
Executive Leadership
Sales
Procurement
Finance
Operations
Compliance
International Business
Strategic Partnerships
Risk Management
Corporate Development
Mergers & Acquisitions
Relevant Roles
Business Development Manager
CEO
Managing Director
Commercial Director
Legal Counsel
Business Broker
Investment Manager
Chief Financial Officer
Procurement Manager
Sales Director
International Trade Manager
Strategic Partnerships Manager
Operations Director
Contract Manager
Compliance Officer
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