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Non Circumvention Agreement for Saudi Arabia

Non Circumvention Agreement Template for Saudi Arabia

This document is a comprehensive Non-Circumvention Agreement governed by Saudi Arabian law, designed to protect business relationships, opportunities, and confidential information in commercial dealings. It establishes legally binding obligations preventing parties from bypassing intermediaries or directly approaching protected business contacts. The agreement incorporates both Sharia law principles and Saudi commercial regulations, including provisions for enforcement under the Saudi Commercial Courts system. It details specific prohibited activities, protection mechanisms, and remedies available under Saudi law in case of breach.

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Non Circumvention Agreement

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What is a Non Circumvention Agreement?

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.

What sections should be included in a Non Circumvention Agreement?

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

What sections are optional to include in a Non Circumvention Agreement?

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

What schedules should be included in a Non Circumvention Agreement?

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

Alex Denne

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

Jurisdiction

Saudi Arabia

Publisher

Ƶ

Cost

Free to use
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

Industries







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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